California Proposes $4 Billion Dollar tax Hike

Just days after the Obama victory the tax hikes are already being brought to the table as the Terminator Arnold Schwarzenegger proposes a huge tax increase aimed at everyone in California. He is proposing raising sales taxes, so this effects everyone not just the top earners of the country. Maybe the if the Terminator would help put an end to all the illegals coming into the country, California would not have such financial troubles. California is flooded with illegals as it is proudly a sanctuary state. The reality is that our country cannot financially continue to pay for illegals to come here, because they cost us tax payers billions of dollars a year to pay for all the social services that they use. The cost to California alone is nearly $9 billion a year.

Schwarzenegger: $4.4B in tax hikes to end deficit
Judy Lin Thu Nov 6 2008

SACRAMENTO, Calif. – Gov. Arnold Schwarzenegger on Thursday proposed $4.4 billion in new taxes and a similar amount in spending cuts to deal with California's worsening fiscal crisis, saying, "We must stop the bleeding."

Much of the new revenue would come from a 1.5-percentage-point increase in the sales tax; the Republican governor described the hike as temporary but did not say how long it would last.

"We have a dramatic situation here and it takes dramatic solutions ... and immediate action," Schwarzenegger said as he called theLegislature back into session to deal with the budget shortfall.

The governor said $4.5 billion in cuts will be necessary across all state programs, including education, social services, health care and prisons.

Just six weeks ago, Schwarzenegger signed an overdue state budget that was intended to close a $15.2 billion deficit. The rapid pace of decline in the national and state economies since then has reopened an $11.2 billion gap that threatens to widen even further.

Schwarzenegger's call for tax increases puts him again at odds with legislators in his own party. Republicans, a minority in both houses but strong enough to block spending plans, were steadfastly against raising taxes in the last budget, and the state Senate's GOP caucus chairman said that won't change.

"The fact is that during this time of economic challenges is not the time to go back to California taxpayers and ask for more money from them," said Sen. George Runner, of Lancaster.

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