Arnold Schwarzenegger,  California,  Election 2006,  Politics

Arnold Schwarzenegger Watch: Here Come the Tax Increases

The Los Angeles Times and Dog Trainer has Massive State Bond Possible

  • At a cost some peg at $50 billion or more, Schwarzenegger seeks an infrastructure program reminiscent of the Pat Brown era.
  • Coming off a losing campaign to curb state spending, Gov. Arnold Schwarzenegger is promoting a statewide public works program that may be financed by a bond sale so large it would dwarf previous state borrowings.

    The governor hopes to join with Democratic leaders and businesses to address Californians’ growing frustration with clogged roadways, polluted water, hospital shortages, overcrowded schools and, in the wake of the devastation in New Orleans, inadequate disaster preparedness.

    “Fifty [billion dollars] to $100 billion wouldn’t be out of the question if we could show voters this would help solve our state’s problems,” said Jim Earp, executive director of the California Alliance for Jobs, an umbrella group for the state’s heavy construction industry.

    Business groups acknowledge that the state may not be able to sell such a large bond issue unless lawmakers and voters alike go along with a tax increase to back it up — perhaps a quarter-cent or half-cent sales tax or billions of dollars in new user fees that could affect businesses.

    Look for the Republicans in the legislature to block the move for a tax increase.

    Look for the Democrats to insist on more social and education spending, before they sign onto the bond issue.

    Look for MORE businesses to leave California.

    Look for MORE OUT- MIGRATION of the baby boom generation and young families to other states with more reasonable housing costs, less illegal immigration impact costs and lower taxes.

    Stay tuned……

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