Two years after a major tax increase, California's budget is still coming up short - by billions of dollars. KTTV Vice President and General Manager Kevin Hale takes a look at the new taxes we might face in 2012.
You can watch the full video of the editorial in the media player... and share your comments on the topic below the editorial transcript.
Full Editorial Text:
Back last summer, there was a lot of glad-handing in Sacramento after they passed what they said was a balanced budget. That budget included a projected four billion in tax receipts that never materialized.
Obviously this was just more smoke and mirrors coming out of Sacramento.
So where are we now? We're looking at a multi-billion dollar shortfall and $2-billion of immediate trigger cuts at the first of the year that will devastate our public schools.
Governor Brown is publicly asking California families and businesses to support a new tax increase in the form of a measure he's putting on the ballot in 2012. This measure is supposed to magically solve all our problems with increases in sales tax, business tax and income tax.
He should be taking a cue from New Jersey Governor Chris Christie, who made deep budget cuts, without raising taxes and vetoed the millionaire's tax. Christie felt the tax was a job killer and would harm the state's recovery.
Let's put California's plight in perspective: In 2009, Californians were hit with a major tax increase, and yet, here we are, just two years later, continuing to face billion-dollar shortfalls and now they're asking us for more money.
Taxpayers are continually threatened by government that they'll cut what we hold dear, law enforcement and our public education, unless we vote for more taxes.
The truth is, California's state spending has increased by tens of billions over the past decade with no end in sight.
But there's a new proposed measure, "The Government Spending Limit Act of 2012," which will also be on next year's ballot. This measure is supported by the California Taxpayers Association, and it aims to limit annual state appropriations to the prior year's level and force Sacramento to pay off debt when it has surplus revenue.
In essence, it's good fiscal management, which is the opposite of what Brown is proposing, which is simply more taxes with no cure for the spending problem.
I support the "Spending Limit Act" and I don't support Brown's proposed initiative.
The "Spending Limit Act" forces Sacramento and Governor Brown to do what they should have done long ago: balance their books and stop spending what they don't have.
Thanks for listening.
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