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CA Passes Largest Tax Increase – Ever

From an approving Associated Press:

Sen. Abel Maldonado casts his vote, helping the state Senate pass its budget compromise.

California Legislature approves budget bill

By JUDY LIN Associated Press Writer
Posted: 02/19/2009

SACRAMENTO, Calif.—The California Legislature passed a long-awaited budget early Thursday after an epic battle that involved several all-night sessions, sending the governor a bill that raises taxes and cuts spending to help close a $42 billion deficit…

The budget deal flew through the Assembly less than an hour after it won approval by a single vote in the Senate after late-night horse trading to win over a final Republican vote…

Senate leaders secured the final vote needed from moderate Republican Abel Maldonado in late-night negotiations by agreeing to his demands for election changes, government reform and removal of a gas tax increase, giving them the two-thirds vote needed to pass the package.

To win Maldonado’s support, legislators agreed to ask voters to revise the state’s constitution to allow open primaries for legislative, congressional and gubernatorial elections.

Leaders also met Maldonado’s demands to remove a provision to increase the gas tax, freeze legislators’ salaries in deficit budget years and to eliminate new office furniture budgeted for the state controller…

In passing the tax portion of the package, Republicans who broke from their party harkened back to former Gov. Ronald Reagan’s decision to pass tax increases during hard economic times.

"What would Ronald Reagan do? Ronald Reagan would vote yes," said Sen. Roy Ashburn of Bakersfield.

Maldonado brought out a photograph of Reagan at a tax bill signing in 1972. He said he never thought he would have to defend California against members of his own party.

"This is not about my political career. This is about the health and safety for the people of California," Maldonado said. "My friends, this might be the end for me. This ensures it’s not the end for California."

Senate Minority Leader Dennis Hollingsworth warned the crippling effects of passing the state’s largest tax increase in California history.

"You may count this as a win because you got a few Republicans to vote for it," he said. "The taxpayers of California are going to view this as a loss."

Funny, Mr. Obama has assured us that his “Recovery Plan” will prevent state and governments from raising taxes.

Notice, too, how the Associated Press buried the detail about this being California’s largest tax increase in history in the penultimate paragraph of the article.

In fact, they deemed it more important to tell us that Ronald Reagan would have voted for this budget before getting around to that minor point.

The AP also neglected to mention that the cancelled gas hike was offset by a proportional increase in the state income tax.

From the Sacramento Bee:

Leaders also agreed to Maldonado’s demand to eliminate the 12-cent additional gas tax, which was estimated to bring in $2.1 billion through June 2010. The money will be replaced with a 0.25 percent increase in the state income tax…

That is what the Democrats and the AP call a tax cut.

This article was posted by Steve on Thursday, February 19th, 2009. Comments are currently closed.

21 Responses to “CA Passes Largest Tax Increase – Ever”

  1. catie says:

    Well if you quit giving everything to the illegal aliens maybe they could have avoided a tax hike.

    • JohnMG says:

      Even during years of high prosperity California operates with budget deficits. If they can’t make ends meet when times are good, how can they expect to do so during times of economic contraction?

      The problem isn’t solved by increasing taxes…it’s solved through budgetary restraint. Unfortunately, so many entitlements have been signed into law that the base can no longer support them, yet asking the people to elect responsible legislators is akin to asking them to vote themselves a pay cut.

      It ain’t gonna happen.

  2. proreason says:

    As always, California is the harbinger of what will happen in the US in the near future.

    • Consilience says:

      PR–I agree. SC is getting ahead of the curve in attempting to assert their sovereignty, from the state government website:


    • proreason says:

      Awesome again, Consilience.

      Is this the same link you posted on secession the other day. I didn’t get a chance to look at that. Please repost it.

    • Consilience says:

      Finally, a lawmaker “gets it”. Sucession is being discussed in NH:

      PR with pleasure:

      From: http://www.examiner.com/x-2698…..ly-gets-it

      “New Hampshire state House Representative Daniel Itse has stirred the political pot with his bill, House Concurrent Resolution 6: “A RESOLUTION affirming States’ rights based on Jeffersonian principles”, under which New Hampshire would secede from the United States if the federal government attempts additional usurpation of power under five specific circumstances, including “Further infringements on the right to keep and bear arms including prohibitions of type or quantity of arms or ammunition…””

      Rep Itse is reacting in part to HR 45; a draconian gun control bill in the House. Liberty trumps Union and just ask yourselves what impact the thug messiah’s mortgage announcement will have on the mortgage banking industry. “Just words”—maybe, but obama is no friend of Liberty.

  3. Steve says:

    BTW, this is the “most popular comment” to this Sacramento Bee’s article about the budget passing:

    Last time CA voted Republican in a presidential election was over 20 years ago. Only 1/3 of the state is registered Republican. This is a liberal leaning Democratic State. Republicans are the minority. You no longer get to decide how we govern this state. The only thing you can do is obstruct and you know it. And when we change the law needing a 2/3 vote on the budget you won’t even get to do that anymore. All you Republicans ever do is whine and complain and spout your hatred of everything and everyone. This is a great state, but if you hate it so much and what it has become then please leave as you keep saying you’re going to do. And don’t let the door hit you in the a*s on the way out.”

    — r_mckellips


    This is the respect that liberals show to minorities.

    • CaliforniaBear says:

      Unfortunately it sounds a lot like what Obama and other Dems have said to the Repubs when the Dems were trying to pass the Porkulus bill. I guess people don’t get the whole point of checks and balances, representatives doing what they think is right for their constituents, etc.

    • Weasel says:

      And middle and upper class Californian (aka “tax payers”) are leaving as fast as they can. The only thing that has kept the population growing is a steady influx of illegal aliens. Neighboring states have sent “trade delegations” to kali to scout out businesses that want to leave. A few more years of this and the place should completely collapse. I say wall the place off and preserve it as a monument to liberal stupidity run wild. And this is coming from a second generation native who is just waiting for my chance to get out.

  4. proreason says:

    “And don’t let the door hit you in the a*s on the way out.”

    My understanding is that part of the budget problem is that many producers have done just that.

    And more will now as they begin to realize it will take decades before real estate comes back, if ever.

    That has been the ankle-chain. But if your arm is being gnawed off, suddenly your ankle suddenly isn’t as valuable.

    The Obamy New World Order is going to force a lot of people into whole new thought processes.

  5. MinnesotaRush says:

    I’ve heard that Caleeefornia is a nice place to VISIT!

  6. rocketman says:

    MN Rush….You are mistaken…it is a nice place to be FROM! My family goes back to the 1850’s in CA. I was born and raised in Caleeeefornia. I haven’t been back in 15 years!!! Have no intention on going back.

    • sheehanjihad says:

      Funny thing is, Sacramento just voted yet again under pressure from environmental lobbies to not claim their vast resources of petroleum and natural gas! The irony is, the oil companies are ready to sign on the dotted line for the tune of OVER 55 billion dollars to be paid up front for leases…..which would put California in the black overnight with a surplus. But no…the environment is more important that the people of that state…..

      So screw em! If that’s how they wish to be, then they can just STFU about needing a bailout that I have to pay for. They want to save the evironment? Lets see how good they are at it when they are flat broke. For real. I cannot fathom the appalling ignorance these people exhibit.

    • caligirl9 says:

      I have never lived anywhere but California. My father’s mother’s side of the family has been here since the late 1800s (from Ireland). I wish my paternal grandfather had never left West Virginia. Even my mom’s native Germany/Poland is looking pretty good now.

      Arizona is looking interesting.

      I am so disappointed. Why doesn’t government run like responsible people, in other words, a budget means you don’t spend more than you earn. Seems pretty easy to me, but no doubt politicians, especially liberals, have no idea how to say “no” to “entitlement” programs.

      And being a 5th generation Republican in California is like having cancer and no voice at all … we will never take back this state.

    • TNpatriot says:

      My parents too were both raised in california. During Vietnam my dad was drafted and stationed at Walter Reed in DC. So I ended up growing up in Maryland. Fifteen years ago I moved to Tennessee and believe me I never want to go back to either of those places.

      I would welcome a flood of conservatives leaving California and moving down south. Might not want to mention your from California though.

    • Weasel says:

      At this point, the only things that might “save” California are a massive earthquake that destroys SF, LA or both (that would be some earthquake!) and/or a tsunami that takes out the entire coastal areas. Those that didn’t die in the disaster and it’s aftermath would then flee the state. It could be a whole new phenomena – “Katrina Cleansing”.

  7. Right of the People says:

    Callgirl9, here is what Webster says about the word Budget: “A statement of the financial position of an administration for definite period of time based estimate of expenditure during the period and proposals for financing them.”

    Governments haven’t adhered to the definition of budget for years. It’s more like a guesstimate of how much more we can spend regardless of what we bring in. We can bring it more if we raise taxes? Great, we can spend that too.

    There’s not much you can do if the majority of voters in your state are liberal looneys except move. My wife and I have done it before and we’ll do it again if need be. Life is too short to put up with this kind of ca-ca.

  8. BillK says:

    I’m depressed that the California Republicans, who had until now stuck to their principles, finally gave in.

    Way too many RINOs in the party – no wonder the public doesn’t vote Republican anymore.

    As Rush likes to say, if Republicans are going to act like Democrats, why not just vote for the real thing?

    • Consilience says:

      Here, here! But—given the realities, we’ve got to fix the party…a tough challenge. That happens when we get involved, speak-up, and agitate—hell, it worked for the thug messiah.

      I wrote to Steele and urged him to isolate Snow, Specter, and Collins…as if… Steele is a “Bush conservative” meaning he’s not a conservative. Still not sure why Newt bowed out…

    • Weasel says:

      About the only silver lining to this disaster is that the “Kaleeefornia” GOP State Senators dumped their RINO leader for negotiating this mess and breaking the “No New Taxes” pledge. And several recall efforts have sprung up overnight to get the RINOs that voted for this. I’m not holding my breath on any real results, but at least a lot of people are mad as hell over it.

      Remember that as a conservative, you are not alone, just out numbered! And that typically makes it a fair fight…

  9. hey California,

    you have 300,000 houes, $9 big macs, and now in hard times, you have even bigger taxes

    are your law makers, trying to kill your state? or are they just stuck on stupid?

    maybey there thinking obama will pass the bail out California bill……..hey why shount we be in the same boat as you?

    o m g i think if i lived there id be moving out of the state

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