Tax hike proposed to solve state financial troubles could be "largest in state history."
State legislators are expected to vote on a budget
compromise Friday after Governor Arnold Schwarzenegger and a select group of
senate and assembly leaders worked out a solution to the state’s $40 billion deficit.
The proposal includes tax increases, spending cuts and
borrowing from existing state funds such as those for mental health and the
California First Five health programs.
Freshman Senator Tony Strickland is adamantly opposed to the
compromise and plans to vote against it.
“It’s a devastating package for Californians,” Strickland said. “It’s a $14.3 billion
tax increase. At a time when Barack Obama’s
administration is talking about middle class tax cuts
cuts to stimulate the economy, the worst thing you can do is
raise taxes and it would equate to the largest tax hike in
said that Governor Schwarzenegger has warned if the compromise budget does not
pass on Friday, 50,000 state employees would get pink slips.
argument to that is that it would be a lot more than that for families across
the state,” Strickland continued. “It’s $14.3 billion in tax increases, $15.8 billion
in cuts and another $10.9 in borrowing.”
proposal also includes a 2.5 percent surcharge on income tax, a 12-cent
increase in gas tax, doubling the vehicle license tax, a continuation of the
two-day-a-month furlough days for state employees and the elimination of two of
14 paid state holidays.