The Associated Press: Calif. Democrats propose nearly $5B in new taxesBy JUDY LIN (AP) – 19 hours ago
SACRAMENTO, Calif. — Democrats in the state Senate on Monday countered Gov. Arnold Schwarzenegger's proposed budget cuts with a plan to raise taxes by nearly $5 billion, largely by extending temporary taxes and delaying corporate tax breaks for two years.
During a Senate subcommittee hearing, Democrats said they want to delay the start of corporate tax credits demanded by Schwarzenegger and Republicans last year to secure enough budget votes. Their plan also would extend by two years the temporary increases in the income tax and vehicle license fee that were approved last year.
Democrats proposed raising the tax on alcohol but would allow a temporary 1 cent increase in the state sales tax to expire at the end of the year.
Schwarzenegger proposed no tax increases in his latest plan to close California's projected $19 billion budget deficit, relying mostly on spending cuts.
Hopefully The Terminator will use his cybernetic veto pen to hold the Liberals feet to the fire.... they either cut back on the spending now, or pay a very heavy price down a very short road.