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What They Are Saying About
The Democrats’ $8.5 Billion Dollar Tax Increase
Published: July 14, 2008 08:22

Senate Republicans are not alone in expressing outrage over the Democrat-controlled Budget Conference Committee’s passage of $8.5 billion in tax increases on California’s businesses and families.  Their plan raises taxes on families and businesses while increasing spending by $3 billion while doing nothing to reduce spending or make long-term reforms to the system.

Here’s what others are saying about the Democrats’ Tax and Spend Plan:

Dan Walters, Sacramento Bee:
“Taxing the rich may have a populist appeal, but it’s fraught with fiscal peril. Alternatively - and this is what Schwarzenegger and Republican legislators want - the state could impose a spending cap that would smooth out the spikes.” (Sacramento Bee , July 10, 2008)

San Diego Union Tribute Editorial: Far, far from a fix. Budget plan: Status quo plus higher taxes:
“But what makes the Democrats’ plan even worse is that it dismisses out of hand proposed reforms from Schwarzenegger and Republican lawmakers to smooth and control long-term spending growth instead of continuing with the present chaotic boom-and-bust pattern. Even Californians who don’t think tax hikes would hurt an already-struggling economy should be appalled by Democrats’ readiness to leave in place a broken system that has yielded so many awful budgets in a row.” (San Diego Union Tribune , July 10, 2008)

Orange County Register Editorial: Spendaholics’ solution: $9.7 billion more taxes:
“Even if another $9.7 billion tax bill wouldn’t hurt the economy, more taxes still would be wrong. The overspending, overtaxing and overbearing situation in Sacramento would be over period, if legislators took seriously the concept of limited government.” (Orange County Register , July 10, 2008)

Garry South, ex-Gray Davis Aide in Contra Costa Times article:
“The Democratic nominee in 2006, Phil Angelides, proposed a multibillion-dollar tax increase and he got demolished,” South said. “There were five tax increase proposals on the ballot in 2006 ... and they all went down. People are simply not in the mood to vote for millions of dollars of taxes on themselves.” (Contra Costa Times , July 09, 2008)

Ron Nehring, Chairman of the California Republican Party:
“The latest round of tax increases proposed by Democrats don’t just target ‘the rich’ or ‘big corporations,’ but target every Californian at every level of the economic ladder.
“In today’s global market, capital is instantly mobile.  Raise taxes on capital in one place, and at the touch of a button that capital can be moved elsewhere for a higher rate of return resulting from a lower tax on that capital.  As it moves elsewhere, the jobs created by capital investment move elsewhere too… Try as they may, the Democrats cannot repeal basic laws of economics.” (Flash Report , July 10, 2008)

Peter Foy, Chairman, Americans for Prosperity of California:
“I am sorely disappointed in the latest budget proposal, which suggests a whopping $9.7 billion in new taxes.  With gas prices at record highs, rising food prices and a sluggish economy, this is precisely the wrong time to raise taxes on Californians who are simply trying to survive.”

Teresa Casazza, California Taxpayers’ Association President
“This is not budget management. This is a recipe for recession. During an economic downturn, the last thing Californians need are more taxes.”

In recent weeks, Republicans have outlined a number of proposals related to solving our state budget, without raising taxes. For more information about the 2008-2009 budget and Republican alternatives to over-taxation and uncontrolled government spending please visit www.SenateRepublicanBudget.com .