Tax Breaks Intensify State Fiscal Debate

[True_Blue]

SACRAMENTO — As Gov. Arnold Schwarzenegger seeks to force down government expenses, his blueprint for long-term reform leaves one area untouched: tax breaks for the wealthy and corporations.

The tax breaks allow yacht owners to avoid paying sales taxes, business partnerships to keep their property tax bills down and large corporations to move money offshore to avoid paying what would otherwise be owed to the state.

Assembly Speaker Fabian Nunez suggests closing such loopholes could wipe out as much as half of the state's $8.6-billion deficit. Analysts say such projections are far too optimistic, but they question the governor's refusal to even look at the tax breaks.

"There are a lot of people in California who are not asked to bear any of the burden of balancing this budget," said John Ellwood, a professor of public policy at UC Berkeley. "The governor has made a policy choice. He is willing to hit the poor more than the upper middle class and the rich."

More....
http://www.latimes.com/news/local/la-me-loophole24jan24,0,6980202.story?coll=la-home-headlines

[cascadiance]

1. If he's not careful, this could be a start of Recall Part II

If Gray Davis was kicked out for being fiscally irresponsible in driving the state into debt, if he's going to keep us in debt by not being responsible in making everyone pay their fair share, he perhaps should face the same music.

[Democat]

2. Wrong, because the California media will defend Arnold forever

Even if the LA Times dares to allow a few people to question Arnold in this article, they will run 10 other pro-Arnold articles to tell Californians how great he is.

Gray Davis was destroyed by the California media with the same fury they use to defend Arnold and vilify anyone who would dare stand up against him.

Arnold is to the California media what Bush is to the National media - glorious and perfect.

To question Arnold is nearly treason if you follow the California media.

[zann725]

3. Davis was Recalled ONLY because powers-that-be wanted a Repug (Arnold)

Everything else was just an excuse.

The State wanted to push through Workers' Comp reform, and Overtime Laws (which Davis had reversed), and clearly Anti-Gay, Anti-Abortion agendas which they needed pushed through quick. And redistricting for 2006...so that California miraculously turns Blue in the near future under Arnold's lead.

I really don't believe it was EVER about Davis OR the budget.

[cascadiance]

4. Oh, I agree totally!

But, the *rationalization* for getting rid of him was that he put us into debt, even though we know that we're the big sponge the feds led by Bushco like to soak for the rest of the welfare states that helped put us into "the red" to start with.

I was just noting that if their rationalization worked to get him out, then turnabout's fair play, and we can use the same rationalization that Arnold's not being fiscally responsible if he's not asking everyone to pay their fair share to get the state out of debt.

[jamesinca]

5. But Arnold played on something very tangible

The "car tags". He did not mention that it was put out there by Pete Wilson, no, he only said he would reverse it. He can have loop holes and people object less to paying more than somebody else. They seem to object more to paying increased fees and taxes then they do to paying a higher percentage than somebody else. Raising the amount taken out of a pay check can be directly attributed to Arnold, having local sales tax and property tax increase is not directly related to him and most people won't think about it beyond the end of their nose.

The car tags increase was directly related to a Gray Davis decision, coupled with a bad budget and he lost. Arnold is willing to screw the people, just not directly. I think that is the difference.