Thursday, November 06, 2008

So Much For Arnold's Anti-Tax Positions

California Governor Arnold Schwarzenegger has abandoned all pretense of being an anti-tax conservative with a proposal for a massive new series of tax increases on Californians.

Schwarzenegger wants to "temporarily" raise the state sales tax by 1.5% -- which would put the sales tax at 9.25% in Orange County and even higher in Los Angeles County. I say "temporarily" as California history proves there's no such thing as a temporary sales tax.

He also wants to selectively levy sales taxes on a variety of services, including veterinarians, auto repair shops, amusement parks, and sporting events.

He completely ignores, of course, that raising taxes -- thereby reducing the money which consumers have available to spend -- never improves an economy.

I can't tell you how much this frosts me. When the economy gets rough, as it has this year, ordinary folks tighten their belts and spend less. But Heaven forbid the state government do the same.

When you combine this with the pending expiration of the "Bush tax cuts" and the other inevitable tax increases that will come with the Obama administration, along with Democrat discussions about nationalizing 401(k) retirement plans -- which if actually enacted would take millions out of the stock market and ultimately force millions of future retirees into the poorhouse -- well, the liberals, including Schwarzenegger, seem determined to push us into a Depression.

Hopefully the California Republicans in the legislature will stand firm on their anti-tax platform, or there will no longer be any point in voting for California Republicans at all.

Friday Update: Investor's Business Daily on "Putting Government First": "Bloomberg and Schwarzenegger risk devastation of the already beleaguered economies under their care by enacting massive new taxes." Noting that Arnold's plan also includes a 10% tax on oil drilling -- another business-killer -- the editorial concludes "It will be a shame if these two tycoon pols can get away with exploiting a crisis to take so much of so many other people's money."


Blogger J.C. Loophole said...

Laura, I know you know this, but I just want to add my comments to yours:
Many (not all certainly) students are under the false impression (whether purposefully taught by teachers or textbooks) that FDR's policies and economic programs lifted us out of the Depression. It only exacerbated and prolonged it. Economists and some Historians are taking a new look and concluded that many of the New Deal programs were unnecessary, and at best gave the illusion of work by making the Government a mass employer.
World War II is what actually ended the Depression - though no one wants war just to end a Depression- that is the harsh reality. FDR used the Depression to gain more support for programs that he and others in his party would never be able to pass otherwise.
Hoover himself said "Every collectivist revolution rides in on a Trojan horse of ‘emergency’." When the credit crisis first occured, it wasn't the crisis itself that worried me- it was what Government was going to do to "fix it." The Government has NEVER been able to "Fix" anything. Industrious Americans, left unhampered by Government, has.

3:14 PM  
Blogger Barb the Evil Genius said...

California history proves there's no such thing as a temporary sales tax

*History* proves there's no such thing as a temporary sales tax.

3:58 PM  
Blogger Laura said...

Very well said, J.C. That's a great quote from Hoover, I don't remember having heard it before.

This week's events, along with the partial forced nationalizing of banks and the massive bailout, have me feeling quite low and pessimistic about our financial future.

I know Arnold has studied Milton Friedman. He can't be dumb enough to think new taxes everywhere will help the economy (and an improved economy, of course, would in turn increase state tax revenues without new taxes) -- but he has apparently concluded that it's more important to court those currently in power (who are always happy to increase their power further via higher taxation) than to stand up for economic freedom. He has pretty much wilted in the face of opposition to conservative economic principles. Some "tough guy."

Best wishes,

4:03 PM  
Blogger Laura said...

So that's not just a California problem, Barb? Why am I not surprised? LOL.

Best wishes,

4:07 PM  

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