Friday, May 02, 2008

Schwarzenegger Considering Massive Tax Hikes

So much for California Governor Arnold Schwarzenegger holding the line against tax increases. While he still publicly opposes taxes, privately he's exploring a wide range of brand-new California taxes:

"Schwarzenegger's staff is exploring a range of options, including sales taxes on lawyer and accountant services, on high-end services such as golf lessons and personal-trainer sessions, and on takeout coffee and other prepared foods that are not taxed now."

More:

"A broader levy that might affect all entertainment purchases -- including movie, theater and sporting event tickets, amusement park admissions, ski lift passes and greens fees -- could raise about $1 billion, according to state tax officials. Taxing the services of lawyers, accountants, mechanics, landscapers, hairstylists and every other service professional in the state could generate more than $8 billion, they say.

"Other possibilities the administration is studying are a tax on certain prepared foods, such as a cup of coffee to go, and on Internet software purchases. Also on the table are limits on the deductions that businesses can claim on losses."

Does the Governor have any idea how it could devastate my "service" business as a proofreader if I'm expected to charge my clients sales taxes along with my fees?

And that would be good for the economy how?

Update: The L.A. Times quotes economics professors from those bastions of liberalism, UC Berkeley and UC Davis, to support Arnold's tax plans.

The paper couldn't come up with a single economics professor to present an alternative point of view regarding the negative impact of higher taxes?

Riiiggggght.

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