November 6, 2008
Mac Zilber
In a move that will endear him to few, Governor Schwarzenegger has proposed $4.4 billion of raised taxes and an equal $4.4 billion of cut spending in his favorite areas to cut: Education, Health Care, and Social Services. He also cut prison spending, in one of the few parts of this move that should be somewhat popular, as most believe that our prison spending has gotten out of control.
This move was an attempt to drastically cut down the budget deficit, which is over $11 billion currently, and was something that everybody believed should be dealt with to some extent. Still, these changes are relatively extreme, and it should be interesting to see how they’re dealt with by the state legislature.
The tax raises will mainly be seen in a 1.5% increase in the sales tax, if they’re passed, as well as in an increase in the car registration tax (remember when Schwarzenegger campaigned against that?) and a tax increase on those who wish to drill for oil in California.
These proposals are an indication that Schwarzenegger knows he is a lame duck, and is starting to act like one. There are rumors that Schwarzenegger was being considered for the position of secretary of energy, and the tax hike on oil companies may make him a more likely appointment for that position.
