KPCC News In Brief
Schwarzenegger proposes temporary sales tax increase to reduce deficit
Governor Schwarzenegger today proposed hiking the state sales tax one percentage point for three years to help erase the $15 billion budget deficit. The governor, who has opposed raising taxes, said the move would raise $4 billion in revenue.
Governor Arnold Schwarzenegger: “This is basically saying, ‘Here is an idea of how we can solve this where everyone gives.’ Because the only way we can solve this budget crisis is by everyone – the Republicans giving and the Democrats giving. And that’s why I say they have to step out of their ideological corners.”
Republican legislators have staunchly opposed raising taxes. Democrats support that idea, but they differ with the governor over spending cuts. The governor’s latest proposal includes $10 billion in cuts. The state budget is almost two months overdue.
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- August 20, 2008 5:46 PM
- Categories: Business/Economy, Politics/Public Affairs
