Disney Responds To Arnold's Tax Proposal

The folks at Disneyland aren't very happy with Governor Schwarzenegger's new tax proposals, which include not only a hefty hike in the sales tax rate, but selectively imposing the sales tax for the first time on veterinary services, auto repair shops, and...you guessed it...theme parks.

Disney tickets are already quite expensive -- $69 for a one-day adult pass. A significant part of Disneyland's income is derived from its annual passholders, who not only buy the passes but show up at the park regularly, where more money is spent eating and shopping, along with going on rides.

At Arnold's proposed new rates, the sales tax for annual passes for a family of 6 would come to well over $100 a year, depending on the type of pass purchased.

How many families, already facing a rough economy, might say "no thanks" on the purchase, especially knowing their wallets are also going to take a hit with new taxes elsewhere?

And, as Disney points out, why would the state want to damage tourism just when our economy could really use it?

A Disney spokeswoman: "We oppose the Governor’s proposed theme park tax because it unfairly targets the tourism industry and may deter new visitors to the Golden State at a time we need them most. This tax is not worth the risk to an industry that is a proven job creator and economic engine for California’s growth."

As I mentioned yesterday, Arnold seems to have thrown economic reality out the window in order to placate those in power in the state legislature.