Gov. Arnold Schwarzenegger today announced a financial rescue package for the state government that includes a 1.5 percentage point hike in the state retail tax that would take Orange County’s sales tax rate to 9.25%. (The state would get 6.5%.) The fresh cash is needed to backfill an $11 billion deficit in this year’s budget
Overall, Arnold is proposing $4.5 billion in difficult cuts and $4.4 billion in new revenues for the current year budget. He called a special session of the legislature to handle the funding crisis.
According to the governor’s plan, the higher sales tax would end in three years. Other planned tax hikes:
- Sales tax applies to the repair of appliance, furniture and vehicles plus golf and veterinarian services. One Orange County vet called it “devastating” as an auto-repair shop owner calls it “bizarre.” More reaction IS HERE!
- Sales tax will be applied to amusement parks and sporting events. O.C. industry reaction IS HERE!
- Alcohol excise taxes are proposed to be raised by five cents a drink.
- $12 increase in annual vehicle registration fees.
- Press release IS HERE! For an at-a-glance fact sheet of the proposal, CLICK HERE.
Hezy Shaked, CEO of the Irvine-based Tilly’s clothing chain, had this to say: “In this tough economy, any increase in price to the consumer is going to be devastating.” (MORE HERE!)
Budget cuts and economic incentives in the plan include, according to the Sacramento Bee:
- One-day-a-month unpaid furloughs for state workers for the next 17 months, as well as rescinding two of the workers’ 13 paid holidays.
- Cutting spending on programs in the current budget by $4.5 billion, $2.5 billion of it from elementary and high schools.
- Revamping the state’s cash-strapped unemployment insurance system by gradually increasing the rates charged to employers and lowering benefits while tightening eligibility requirements.
- Relaxing some state labor regulations dealing with meal and rest periods, overtime exemptions and work schedules.
- Speeding up public works projects, especially hospital construction, to inject life into the state economy. That would require modifying some environmental regulations.
“In the six weeks since I signed our last budget the mortgage crisis has deepened, unemployment has increased and the stock market has lost almost 20 percent of its value,” Schwarzenegger said. “We have drastic problems that require drastic and immediate action — we must stop the bleeding right now.”
- Another problem: The state may not be able to borrow more money this year. (MORE HERE!)
- The governor, a Republican, may have trouble with his own party getting his plan approved, the Associated Press reports:
Democrats already have called for tax increases, but Republicans have adamantly refused them. That complicates efforts to get a deal because some Republican votes are needed in the Senate and Assembly to reach the two-thirds majority required to pass spending plans and tax increases. State Sen. George Runner, the Senate’s GOP caucus chairman, flatly said that Republicans will not support a general tax increase. “The fact is that during this time of economic challenges is not the time to go back to California taxpayers and ask for more money from them,” said Runner, of Lancaster. (MORE HERE)
- Not all reaction was glum. At least one economist — Jane V. Hall at Cal State Fullerton — thinks some of the targeted spending could boost jobs. (MORE HERE!)
i don’t like this. but with the state budget the way it is. i say go ahead arnold.
this is bull terds.
just think of what the republicans reaction would have been if the governor was a democrat.
He played Conan the Barbarian, thinks he is King Richard but really has become the court jester - Arnold the fool.
Wow. Arnold is really officially worse as a the governator then as an actor in his movies. WE NEED TO CUT SPENDING NOT RAISE TAXES. It ’s not a tumor is just common sense. Let him run for the Senate, No way is he getting my vote and I voted for Obama.
Good God. Is this what it’s come to?
Gov. Schwarzegger is a joke. As a state, we already have the highest taxes in the nation and he wants to raise them even more?? He’s doing this to cover his ass because he does not know how to manage a budget.
We must be fools for voting for such a fool.
And why does he only want to raise the taxes in the OC?
The problem with this “temporary” sales tax hike is that it will become permanent just like it did in L.A. OC’s unemployment rate is going up as so are our sales taxes….nice going Arnold!
This is rediculous, and shows how COMPLETELY out of touch Arnold is with both the economy AND his State!!! I’m struggling as it is, and I make a decent salary. I can’t even imagine how it’s going to effect those who make less than I. I pray this gets stopped!!!
According to the McCain / Palin logic isn’t this Socialism????? Hypocrites…
According to McCain / Palin logic, isn’t this socialism??
Hypocrites!
not during these trying times…it will kill all the mom and pop shops…the more people would stop buying…
NO! There are better ways to solve this financial crisis.
You cannot add fuel to the fire like the Fed is doing, That only increases future debt and exasperates the entire economic mess.
You also cannot pass the burden along to those who can least afford it. Higher taxes will only reduce public expenditure thus negating any overall stimulus.
The work begins at home Arnold. Cut the bureaucracy first! Eliminate 25% of the current wasteful pork barrel government expenditure. Don’t touch the schools or health care though.
Side note: Do we really need two separate state funded universities ie CalState and U of C? MERGE them! And cut your expenses that way.
There are too many overlapping social, education and health care related programs. Eliminating the duplication of effort would go a long way into solving the current problems.
NO ONE CAN AFFORD THIS!! Consumer spending is already at its lowest levels EVER!! WTF?
He lacks discipline! with spending that is.
First off there is no such thing as a ‘temporary’ tax. It will be permanent. When prices for gas, food etc. started going up, I cut back on things. I didn’t go in to my boss and ask for a raise to compensate for the increase in prices. The state needs to cut back, period. Our current taxes are being mismanaged, so this would just be more money for the political hacks to waste.
Thanks Arnold, I just won’t buy anything. How bout cutting some expenses first. The state is way to big. They should be funding only the necessities.
I have a headache. It might be a tumor. It’s not a tumor! I am a cop you idiot.
Raise taxes to stimulate the economy?? Sounds like Arnold my have missed an econ class or two… what a joke.
You never raise taxes in a recession. A budget deficit in a recession is not an immediate concern.
Deficits are typically a problem for two reasons (1) they can create inflationary pressure (2) they can cause interest rates to rise due to increased demand for public credit.
In a recession, the economy is operating below peak production, so the increase in aggregate demand is met with increased production rather than higher prices (a good thing). And with the Fed acting simulatneously to lower interst rates, item (2) becomes a non-issue.
Worry about the deficit when the economy is healthy. For now, cut taxes and let the deficit remain.
All of you airhead continue to forget, it is not the Governor that we need to be upset with over spending, it is the Assembly. They set the budget. We also blame the Governor or the President and forget who is passing the budget! We got rid of Davis now you want to get rid of Arnold. Until you get rid of the Assembly you will get more of the same.
The great fallacy of government is that it operates efficiently which couldn’t be further from the truth. No one in government believes otherwise which is why the largest recipient of tax dollars (education) scream that there’s no more to cut. As I understand it, the schools are being asked to cut $4B which they don’t want to do however, harsh reality is setting in.
Raising the sales tax doesn’t not lend itself to long term prosperity. If it did why not raise the rate to 10 or 20 percent and the coffers would be overflowing.
It is uncontroverted that Arnold is an effective governor and he hasn’t achieved notable success except for the DMV fee rollback. Sad when he had plenty of chances and didn’t take on the challenge under the misguided belief that he could be friends with the Democrats and still accomplish much. Will he have the fortitude to tell the schools and unions that they must accept funding cuts? Will the Democratic leaders accept it and tell their constituents? I doubt it.
CA is locked into functional disarray and there’s nothing on the horizon that encourages me to believe otherwise.
Sacramento has messed things up again and now we’re going to have to bail ourselves out. I would give some limited consideration to a 1 percent increase that sunsets in 2 years with an accompanying law that says it’ll be reduced 1.5 percent at that time. This would only be slightly palatable if 3/4 of the projected deficits were made up with tax cuts.
if you raise the sales tax, people will buy less… if they buy less, the small shops they bought from go out of business… if they go out of business, jobs are lost… if jobs are lost, unemployment goes up…. uh, that would be the definition of a democratic idea. Let’s tax everyone and then watch everyone spend less…. arnold is not a real republican…..
This sales tax will only feed the hungry mouths of the liberal California legislature and encourage them to continue spending. We need to stop this exessive spending!
If this passes, we would be paying for the governments poor budget planning. The government does not manage money well, so why would we give them more?
terminate him.
RECALL ARNOLD ‘09. This is not Germany or Austria with all the taxes and SOCIALISTS running the place. Cut spending! Cut back on government law makers in Sacramento. CUT PENSIONS NOW. Use the old Grandfather clause to do it.
POWER TO THE PEOPLE. It is time to FIGHT BACK!!!
Unbelieveable. Add this to what Obama wants to tax my family and we might as well sell our small business and move to tent in the NV desert.
We voted against a “temporary” tax increase after OC was in a big deficit, and guess what, we had a surplus a short time later. I hope we can vote on this nonsence again. When are you people going to stop voting for Democrats who tax and spend ?
SUE ARNOLD for discrimination against OC. Any lawyers out there???
We should take up a collection and buy Arnold a strap-on pair.
He hasn’t been the guy I voted for in quite a while.
Is this the same Arnold who quoted our lame duck prez Bush when he was campaigning and told all of us ‘NO NEW TAXES’ ? What a rip off, Arnold! Had I known it would come to this, I would have voted for the other guy. Take some responsibility for your out-of-control spending!
I think this might be the end to his political career, your kidding me right? 9.25%?? We voted out the last governor for trying to triple the DMV fees (Davis) and I think we should do the same for this guy. Too bad his career in acting is toast as well…
Just wait for Obama’s tax hikes on top of this idiotic proposal…
Arnold- WE need to TERMINATE YOU !!!
Is this the CHANGE we were promissed ?
t Said:
When are you people going to stop voting for Democrats who tax and spend ?
uh duh? You know the Gobernator is a Republican right?
chalk up several more reasons to leave this state..
We are foolish if we are suprised by this. With Tuesdays passage of seemingly every darn tax and bond initiative on the ballot, our inept and overspending legislature and our continuation of the two party system that continues fail at putting moderation into one or the other extreme party category, our ineffective governor had no choice. This is only the beginning.
NO NO NO NO NO NO NO, I said ((((( NO )))))
Cut the Governments Salaries and Spending.
Look how they live, it’s ridiculous!
I am poor, I can’t afford anymore taxes.
I can barely pay the ones I have now.
Oh, never mind, maybe I can just die now.
I’m done.
Wow, not a good sign…. almost a 10% sales tax… that along with a 7+% income tax in California coupled with Federal Withholding and it makes you wonder. Imagine paying almost 10% of a car’s value just to buy it in the State of California. So, if I buy a $ 25k Toyota, I have to pay almost $2,500 just to buy it in the State of California.. Wow on that !
The radical democrats keep electing people who think that the middle class is just soaked with money and would gladly just give it away for program after program, entitlement after entitlement…. we are about at the point where the average taxpayer is just going to say…. “sorry, I just can’t afford to pay the tax” and just hunker down and not buy anything….
Here’s an idea…. gosh, cut spending….
Counting on the remnant of Republicans in the California Assembly to be stalwart in their opposition….
c
NOOO!!!!
I don’t agree with this. Not everyone in the OC is rich!
Hey Arnold, the problem is not a budget shortfall. It’s the overspending by your office and the Assembly. You and Fabian Nunez need to stop flying private jets! What happen to cutting all the credit cards in Sacramento?
Amazing!!! What is happening in this state, is just a precursor to what is going to happen at the federal level! Start writing to your state assembly members and senators. We are going to bk ourselves! Get rid of the Illegals and social programs!
http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html
This is just getting ridiculous. I remember when sales taxt was 6% and everything was just fine. Every time there’s a crisis the solution is let’s raise taxes. If we continue on this route sales tax will be 30% in another 30 years.
Arnold, here’s the solution. DONT SPEND MONEY YOU DON’T HAVE!!!!. Could it be any more simple?
Oh Mike, Schwarzenegger is a Republican in name only - his actions are all Democrat.
Where’s Gray Davis when we need him?!?!
Jimmy - the Governor doesn’t spend our tax money, we have a
wonderful legislature (D) doing that.
It’s okay, I’ll just pay the tax increase with the check Obama is going to be sending me in the mail. I didn’t get it yesterday, but I’ll check again today!
Why is everyone picking on OC? First we’re all anti-gay, religious fanatics and now we’re all supposed to be rich. Somebody forgot to tell me. Maybe I should move, I apparently don’t belong.
OMG what the hell is going on? Seriously do they think that we are pooping money? Yeah not everyone in the O.C is rich! This is just insane! People are losing there jobs, the economy is going down and now this!
This is what happens when we elect an actor to run the state. He needs to say here’s my paycheck until we can get thru this money crunch
He can want in one hand & s**t in the other… .05% is about all he will get.
Arnold:
How does it feel to want? If you did a better job of controlling expenditures, this wouldnt be an issue. So again, how does it feel to want?
Here we go! This is just the start and there will be no where to hide your money. Thanks liberals for bankrupting this once Great State.
Impeach Him !
No more Taxes, that’s a lot of bull. We all pay to many taxes as it is. Give us a break! I agree with Eliz, who said .05% ia all he will get, that’s good enough for me. Arnold, read that papers buddy, were in a recession.
1) More taxes=less revenue 2) Less taxes=more revenue 3) California Governor=Maria Shriver 4) Mr.Mom=Arnold Schwarzenegger 5) California Citizens=Broke, Unemployed, Suckers
Arnold is the same guy who told us on the Jay Leno Show 5 years ago that Californians are overtaxed and that he was going to be the ‘people’s governor’ and cut spending in Sacramento! No more taxes! Now he wants to add to your tax burden by adding a record $0.015 tax increase to whatever you purchase! This means that with the recent ballot sales tax increase, the Los Angeles sales tax will go over 10%! Arnold lied to you, folks. Doesn’t it matter when a governor lies to you anymore? He signed all the previous budgets and encouraged the out-of-control spending in Sacramento and now he wasts to punish YOU for Sacramento’s irresponsible spending habits! Heck, we spend $10 BILLION tax dollars a year in California to support illegal foreigners. Why doesn’t Arnold address THAT issue? No, he wants to hose you instead!
Don’t blame the governor or the state assembly. Blame the people that allowed all the illegal’s here to begin with. You wanted cheap labor to pick your fruit and now they are here to stay with their children as legals. They all need medical care, food and everything else it takes to live. You wanted them here- you got em. Bob
There, apparenlty, are not too many bright readers of this newspaper. The Tax applies to the entire state, not just OC. But any way, it is astounding that this leap from the balanced budget he approved in late September a to 11.2 billion deficit occurred in ONLY six weeks! Amazing, folks. It just snuck-up on him, I geuss. And, he wants to fix the problem with 4.4 B in new revenue and 4.5 B in cuts. Who eats the other 2.3 B? Heck things could be worse, LA county just voted in a 1% increased sales tax. That’s 11.25 cents of every dollar.
OH HELLS NO!!!
If Arnold would to cut off ALL subsidies to the illegal population I would be more able to agree with this. Until then no way.
Bob Dole:
The people don’t enforce the laws on the books. That’s the government’s job. If the government didn’t enforce breaking and entering laws you’d have to stay up all night to protect your home. Don’t you understand that? The government ENCOURAGES lawbreaking by NOT enforcing our laws, just like they have failed to do with immigration!
Though many people get back nearly all of the taxes (state and fed) that they pay (some even get $ they didn’t even pay = earned income credit), we do not. And this RINO wants to increase our sales tax, too? Looks like my husband and I picked the wrong time to think we could afford to finally start a family. . .
There is a shortfall of $11 billion and they only have $4 billion of “difficult” cuts. You know what will be really difficult? Having to find a way to stretch my family’s budget even more (now that we added a little one). How about the state makes more budget cuts instead of reaching into my family’s wallet?
We desperately need our police, firefighters and teachers. I want more responsible spending and harsh review of spending but I am so tired of all the years of budget crisis. I am willing to pay the higher sales tax for the 3 years, but if we have to feel the pain of cutting back. The programs and gov’t spending better feel the pain too! But not at the cost of our necessary services.
Why don’t we cut out spending for illegals and their children! That should almost balance the budget in and of itself. Remember in the 70’s when sales tax was “supposed” to be a temporary tax? Well, 30+ years later its still here and going higher and higher. CUT spending, and stop taking the money from the tax paying “legal” citizens!
We are being lead by a bunch of idiots that make the 3 stooges look like Harvard Grads.
Consumer confidence is low. People are reverting to survival mode doing away with many if not most discretionary spending and your answer is raise taxes??????????????????????
According to the governor’s plan, the higher sales tax would end in three years…
yeah, sure. We all know that it will not end in three years. And why not raises sales tax, ’cause when the price of everything goes up, so do peoples wages. lol Give me a break!!
How many more bad decisions can Arnold make and make us pay for his mistakes!! My company is cutting our budgets, laying off left and right (every other week) but our corporate officers are still spending money like mad just like he is!! What is wrong with this picture!!! Shopping? Sorry kids, we are going to have an old fashion Christmas (the way it should be: Grateful for what we have not what we give or take.) I fit the middle class and I refuse to pay that percentage just to give to the rich. I’m barely surviving as it is.
Arnie on steroid again???
With that high of a sale tax I would not purchase anything. I will keep my car till the wheels came off. Only purchase a used junker if needed. Limit eating out. Purchased needed items from vendors that don’t charge for sales tax on the internet. Many people and business will move out of state. This will create excessive unemployment in the two digits. Those winnies running the State don’t think this will happen? Now everyone aren’t you just happy you voted in the 10 Billion Rail bond? Guess who pays now!
I have a solution: Buy online and out of state items that will not perish like food. As for food, nothing wrong with growing your own and it is a healthy choice. By the way folks, Obama has not even taken office yet and already here we have one of MANY tax hikes. I did not vote for Obama nor did I vote for Gov. Arnold Schwarzenegger. I think anyone that voted for either one should be the hardest hit because you chose these two morons. The sad thing is that we ALL suffer for the idiot votes out there.
Hey Sacramento morons, stop spending money you don’t have. It is as easy as that. Raise the sales tax and it might be worth buying items in another state.
# oc res Says:
November 6th, 2008 at 12:35 pm
You never raise taxes in a recession. A budget deficit in a recession is not an immediate concern.
Worry about the deficit when the economy is healthy. For now, cut taxes and let the deficit remain.
*******************************************************************
Unlike the Federal government, CA’s state constitution requires the state to operate with a balanced budget. We are not allowed to carry a deficit. Therefore a budget deficit is an immediate concern - recession or not. The options are cut services or raise taxes. My vote is to cut services.
How could I have been so fooled into voting for Arnold the RINO (Repupbican-in-name-only)? In retrospcect, it should have been clear that anyone married to a Shriver cannot possilbly be Republican. Brilliant strategy by the Democrats….plant a double-agent as goverrnor of the largest state!!!!
Oh just great. We’re doing such a great job educating our kids, NOT! So what does he decide to cut AGAIN, education. Arnold you have been nothing but a big disappointment, How about making the tough decisions you were elected to make and make the cuts where they need to be made, entitlements. Education is an easy target and you should be ashamed of yourself hitting that again. What a disgrace!
Now let’s see, I can’t make ends meet so I go to my employer and say give me more money? Yea, that will work. It took so long for you to come up with a budget and now there’s a shortfall? Nice job. I’d say that gets you an F for job performance.
Isn’t there any politician out there with a brain that has the balls to fix these problems?
I’m sorry we need to cut more expenses from everywhere, even schools and healthcare. CA schools are terrible. I have friends who have come from poor countries and were better educated when they arrived. How is this possible? We can’t keep throwing money at this problem. Why does the state have to pay for babies of all the poor people and immigrants. I am fully insured but some people at the hospital where telling us we could have received benefits. I know people who thought I was dumb for paying for baby formula? I have more pride than this. I’m sorry I truly believe that if they cut this expense, people wont have as many babies, i guaranty this.
For those who say they would just buy things out of state, the state tax law actually requires you to pay taxes on items purchased out of state if you use them here.
The state says: You generally owe California use tax when you use, consume, give away or store tangible personal property (i.e., products you can see, weigh, feel or touch, such as clothing, books, computers, DVDs or CDs) in California that you purchased from an out-of-state vendor. If the out-of-state vendor does not collect the California tax on your purchase, you must pay the tax.
Few people do this, but by not paying this tax to CA, you are actually cheating on your taxes.
Your typical public employee
1500/mo health insurance, 11 paid weeks off per year, retire at age 55 with 80% of your salary with a 2% cost of living increase every year.
And why is the state broke???
shoots the h _ _ _ out of Christmas / shopping and if implemented it will be just in time for the holidays. BTW no such thing as temporary for politicians
WHAT THE HELL?
Is this guy out of his freakin mind?
Isn’t this classic? Hits us with a proposed record sales tax increase of $0.15 two days after the elections are over! What a racket they got going here. Now he will be able to find a rogue republican or two who will roll over for the dems, given enough loot or favors, to kick this travesty through! What a racket!
LilyC Says:
November 6th, 2008 at 12:49 pm
Unbelieveable. Add this to what Obama wants to tax my family and we might as well sell our small business and move to tent in the NV desert.
Just move out of the country please.
Back to Hollywood for SCHWARTZ-CLOWN-NEGGER.
Most people cannot afford such an increase; what is Sacramento thinking. I say lets start with the Governor’s salary and benefits and then strip the other politicians as well. Secondly, stop rewarding laziness…cut the handouts - most of these people are getting assistance from multiple government agencies and live better than families working 12 hour days to support their families.
In light of these new developments (actually, even without the possibility of increasing taxes), I’m sure glad that the voters of this great state voted in three new bond measures this year. And that’s not including any new local bonds. . .way to go, voting public!
One more thing, it was presented as so important to get $ for the light rail system, but the state spent a fortune to print and mail out the booklet explaining why we need to approve the bond measure for this train! Why didn’t they start with the $ they spent to spread their propaganda?
Stupid state, stupid government (governor and legislature), stupid voters.
Mrs. Hash Brown:
Do you trust the elections? Why would the citizens of Los Angeles impose a $.01 sales tax upon themselves to fund a subway from LA to Santa Monica. The large majority of people in LA are poor or middle class. This will hurt them the most. 82% of Los Angeleno’s voted. And the state claims that they barely got the 66% (2/3rd’s) needed for approval? Does this pass the smell test for you?
WOW! Is it one of his acting lines? Republican (governor) plans to raise tax??? It’s impossible; NO, it’s hypocrite. That’s a reason why so many Republican voted Democrat last election.
CUT SPENDING NOT RAISE TAXES.
Okay, this will solve absolutely nothing. Also, say goodbye to spending.
What the H3(*# is he thinking? It’s hard enough to get by now you want to raise taxes. That’s BS and I think there should be another recall for governer.
Gov. Arnold Schwarzenegger is a hypocrite he just made fun of Obama then turns around puts on his democrat hat and wants to raise our taxes. He needs to retire if he can’t cut the State budget like the rest of us are doing with our home budgets.
Hey Mike….
Gov. Benedict Arnold is a Democrat… He’s just too much of a coward to officially admit it.
Of course he does. But I want Orange County to end being a DONOR county. So, I propose re-evaluating the realignment of sales tax away from the OC and redistribute a fair portion of the amount of tax collected here and send it back here. Then if you still need to raise it, put it before the voters.
He should propose the same amount to the area in which he lives (Brentwood) and see if they whine! If they do, then he should impose it on them anyway.
Mike: Who are you kidding? He IS a Democrat!
Thank you LilyC, I am stupid like so many others. I did not know that we had to pay taxes on items out of State. Thanks again.
It is amazing that so many people complain about Democrats and tax increases and uncontrolled spending. Arnold shows once again that Republicans raise taxes and GW Bush has proved that Republicans can spend like Sarah Palin.
Democrats and Republicans are two sides of the same coin and only know how to “fix” things by taxing more or spending more. At the end of the day, much of the State and Federal budget is tied up with things that voters have approved.
As a footnote, California’s economy would have been greatly improved by legalizing gay marriage. Marriage is a huge money industry and California just shot itself in the foot with that on. Too bad 52% of the voters bought the lies.
how do even get to 13 holidays
new years, mlk, presidents day, memorial day, 4th of july, labor day, veterans day, thanksgiving, xmas- thats 10
so we throw in an extra day at thanksgiving, columbus day, - do they get flag day off
Suck it up everybody!!! We need the money. Desperate times call for desperate measures. People are spending less so we do need to raise the taxes. I didn’t vote for Arnold, but he is doing just fine.
WE NEED TO CUT SPENDING NOT RAISE TAXES
# Jay Says:
November 6th, 2008 at 1:43 pm
LilyC Says:
November 6th, 2008 at 12:49 pm
Unbelieveable. Add this to what Obama wants to tax my family and we might as well sell our small business and move to tent in the NV desert.
Just move out of the country please.
**************************************************
Why on earth would you want me to leave? I fund schools I don’t use, welfare I don’t use, a legal system I don’t use, drug and alcohol programs I don’t use, state health services I don’t use, food stamp programs I don’t use, public house I don’t use, etc.
I have paid a lot in taxes to this state that continues to find ways to waste every cent, drive out jobs, and make things more than comfortable for people who aren’t here legally.
Some of the commentors above don’t understand the headline of the article. This is not just a tax on OC or an increase on OC only. The proposal is for a state wide tax increase that would increase the OC tax rate to 9.25%.
It will kill restaurants who are getting killed already, 10% tax and a 15% tip, including a tip on the tax.
And how about the car dealers, an extra $500/car, don’t the salesman only get around a $100/car
It seems the steroids have finially infected Anolds brain! Won’t get my money folks. Time to revolt in masses
Sales tax goes up just buy everything from electronics to clothes on the internet where I don’t pay sales tax.
Where is Gray Davis when you need him?
Arnolds past steroid use has effected his brain now.
Unfortunately the people of California are just about tapped out. You can only take so much then we move.
cut service, not tax-the buget still needs trimming
Do they ever learn? The GOP just lost big time and once again they continue to use the same losing tactics. Lower taxes, smaller government, law & order (immigration), family values and job growth is what the GOP should be focusing on to once again get their base back. For those up and coming GOP governor hopefuls you need to get your faces on TV and start opposing Arnold and proposing a true GOP platform, NOW, Don’t Wait. Learn from McCain it didn’t work for him, it won’t work for you!!
He can pay 9.25%, the rest of California 8.25% not just OC.
The intentios are good but 9.25% vs. 7.75% in OC that’s pretty drastic. In our already failing economy middle class is managing to stay afloat.
Please….don’t sink us.
I like how once someone you Republicans voted in does something that is stupid as hell, you guys all come out and say well he’s not a real Republican he’s really Democrat……so FOS
Arnold could raise money for the state by making another movie.
Here’s a silver lining. You could live in:
Alameda County: Current sales tax 8.75%, Proposed 10%
SouthGate (in LA Co.): Current sales tax: 9.25%, Proposed 10.75%
There are several counties with sales taxes at 8% or higher now. And interesting to see that Laguna Beach has an additional 0.50% sales tax, so theirs would be 9.75%.
Bill Anderson you should go on a fact finding mission so I will help you get started. “Your typical public employee” earns about 10 days a year for the first 3 years, most pay for medical coverage and do not retire with 80% of their salary unless you’ve worked there for about 45 years. Meager salary for cheaper healthcare; its a trade off…Nothing is for free.
Hey Bill Anderson, you forgot Cesar Chavez Day
Hey people, are you fed up enough? Let’s get all those democrats out of Sacramento!!! We need to get back to reality!
Now if only we could get rid of our “Tax and Slash” Republican governor.
Anti Gov: say’s “California has the highest taxes in the nation”? Well, I will tell you that in Cook County, IL; the sales tax is 9% ;and in Chicago it is 10% ;and in New York City it is 8.38% just to name a few.
There is too much waste in the state budget. I dont care what they say, they can cut more. Do not raise taxes.
We’re all sick of ever increasing state revenue and budget shortfalls. The state government has had many years of increased revenues and still managed to outspend their budgets. Get your books under control. Cut spending. I’m a republican who voted for Obama. Looks like arnold is next to go.
after 3 years
15 vacation 13 holidays 12 sick days maybe 4 family sick and personel days, I don’t know what the state has but every city does this 9 hour day which means every day is an extra 12% so we are at 50 days per year, ok so I was off by a week..
I know locally citys pay 2.7% per year which equals 81% at 30 years.
Everyone I know in small business is getting killed now, most down 50%, can’t the state cut back.
What the heck does “Relaxing some state labor regulations dealing with meal and rest periods, overtime exemptions and work schedules.” mean?
Doing away with lunch and OT? This sounds ominous… more details please!
“Anti Gov: say’s “California has the highest taxes in the nation”? Well, I will tell you that in Cook County, IL; the sales tax is 9% ;and in Chicago it is 10% ;and in New York City it is 8.38% just to name a few.”
…and look what high taxes has done for those cities…and look what our high taxes are doing for us now…
ok…not everyone in OC makes $100 grand a year, I know I don’t, I barely clear $30 grand! A 1.5% increase in taxes will be devistating to me. My budget is already tight enough, and I dont spend any money on myself! It would be nice, every once in awhile, to at least buy myself a new shirt, or a pair of pants, but, I can’t even do that now, much less if this new state budget goes through! Its bad enough that the price of food has gone up so much, we can hardly put food on the table! Fortunatly, we have no kids yet, but, if my budget is already so stretched, how can you expect people who don’t make as much as I do, which isn’t a lot, to be able to make ends meat????
I think the main problem is state unions fleecing the taxpayer. The other problem are all the propositions that have been added to our state constitution that call for minimum funding for certain areas and bond measures which have to be repaid. It seems that with every election, some multi-billion dollar bond measure is passed.
This leads to very little flexibility when it comes to the budget, which is why we keep finding ourselves in the same position over and over again. Say no to multi-billion dollar bond measures, and vote out assemblymen/state senators that are in bed with state unions.
I don’t think raising taxes is the answer since it’s just treating the symptom, not the disease.
I say that we should have an amendment to tax the churches, especially the Mormons and the Knights of Columbus, since they have such stellar fund raising skills for discrimination.
It’s the spending stupid. Entitlements, pensions, and useless social programs are killing us. 10% sales tax, 1.25% property tax, state and 30+% federal income tax -you’d get a better return living in Europe, getting guaranteed healthcare, a six week (paid) vacation, grants for higher education, family leave. Here we are paying the same and getting S#!T back!
PS -Didn’t we revolt in-part because of a breakfast beverage tax?
I just read that LA County tax would be 10.25% under this plan. If this starts before December it will be really bad for California’s Christmas sales. I know that I will be looking a little bit harder for out of state companies with free shipping as I make all of my purchases on-line. Other states will basically be offering an automatic 9%+ discount.
Cut unnecessary programs like health care to illegal aliens. Cut ESL programs in schools. Cut administrators paychecks. Bill Mexico for 30% of our prison population. Then you won’t need to raise taxes.
The sick , elderly and disabled people that were born in America will be hit hardest with cuts. That is the way it always goes. I don’t know how the term Republican can be used with respect any more. Two wars- a bankrupt nation and lots of people worth Billions of dollars because we followed another republican the fooled us……Work all your life to lose your saving in the stock market and now not have any health care in my state. What a shame.
What else do you want him to do? Pull a few billion dollars out of his ass? Conserving spending is NOT enough to get us out of the MASSIVE debt that we are in. He’s trying to pick up the pieces. There’s not that much of a different between 1.75%. Maybe if you conserve your personal spending, it would makeup up the difference of the tax increase in your own pocket!
Here’s the solution for Californis. Legalize POT!
It already is the biggest cash crop in California so let’s
legalize it and tax the hell out of it! Budget Crisis Solved!
Get used to it. Afterall he is now one of Obama’s peeps. A flat sales tax of 10% makes perfect sense for the federal government as well eliminating the need for Income Tax and makes it fair for all people, not just the so-called “rich”.
Arnold has become a Democrat. We need to reduce spending.
He is a BIG DISAPPOINTMENT!
You messed up -broke the country and now want to be a Marxist. We are Republican’s were are Marxist!! Say it proud…your are a Republican Marxist.
This is only the begining folks, we will see this increase of government and fees and little return. Just wait until the police and sheriffs departments need extra monies. Many more innocent people will be pulled over for very minor traffic violations to pay for these needed and vital services. may god have mercy on us all.
We say we want to see spending cut. How many bonds did we just pass less than two days ago? How many tax0centric politicians did we just add to the roll call? And we are surprised that raising taxes and not reducing spending is the result? Ridiculous!
So nothing about illegal immigration? How many billions are we spending on health care, schooling, and incarceration for people here illegally? Please just deport the illegals in our prisons, and then ENFORCE THE IMMIGRATION LAWS THAT ARE ALREADY IN PLACE.
Wow, I remember when sales taxes were in the 6% range, then 7.25 etc, now almost 10%, for sales tax! Makes me glad I saw the light and left Cali 3 years ago because the “golden state” was going to hell in a handbasket. Nothing much has happened here to prove me wrong since then, much has happened to prove me right. This is but one example.
Just out of curiosity, why has there been no effort to recall Governor Schwarzenegger? We got rid of the last guy for less than this, and called a special election to do it! ARNOLD SCHWARZENEGGER IS A WORSE GOVERNOR THAN GRAY DAVIS!!! This is what stupid Californians get for voting for a candidate just because he’s a movie star!
Why can’t they raise the real estate taxes on people who bought homes 30 years ago and pay like $1000 in real estate taxes when these taxes are support the schools, roads, fire, police? I find it ridiculous that we are subsidizing so many homeowners who for so many years have paid so little in RE taxes. It’s not like that in other states.
this will make things worse for the state as buyers will be purchasing via internet where they don’t get taxed. now the state gets zip!
Way to go Arnie ……………..
What will you have us do next………. Surrender what little we have left and divy it out?
With the economy the way it is how can anybody afford to pay even more. Beginning 1/09 you will be taking even more out of the paychecks of the ones who are still lucky enough to be employed.
GET REAL ARNIE was there too much weed smokin in your past?
At the same time idiot voters passed prop 1A (cost 10 billion tax dollars BEFORE interest) and the childrens hospital bond(whats another few billion).
These same voters are complaining the need to raise state taxes.
As almost everyone notes in this comment section; the spending cuts are where solution lays for the budget problem. Furthermore, the fact is that the Assembly is where the budget is made and there are several strongly positioned folks who would not budge for to get their projects going and have no consideration for the State as a whole. Professionals should make the State Budget with limited say so by the Assembly and it always should be balanced. Approving an unbalanced budget is the result of the current situation. Furthermore the State should NOT have its funds on the stock market! It did loose a huge sum in the last four weeks, - Billions (!!!), thus this loss alone would be enough to pay for most of the eliminated programs and the proposed sales and other tax increases! The State should be in some business, where the revenues’ value would be kept at least above the inflation level. There are many ways to do it. Nevertheless, the passive way of moneymaking always the riskiest! The State is lacking professional Budget and Development professionals! The first thing should be to pull out all the funds from the stock market. Today – again -the State lost millions! Naturally, raising the taxes is not the way to go. Cutting expenses is the only starter for the healthy economy!
Cut back the spending on illegals to ZERO and we won’t have to increase the sale tax.
Arnold. Wake up. People are losing their jobs, stores are closing, prices are rising, the economy is collapsing and you want to drive the final nail in the coffin.
How about this, do like every other “employer” is doing; lay-offs, benefit cuts and out source. Get rid of the illegals, stop providing free education and healthcare to everyone other than Californians.
When your other Socialist friend takes over the White House in January, he has already said he will add taxes and fees to cover the Federal government’s giveaway.
Pretty soon there will no one left working or buying to fund the “Santa Claus” programs that continue to come out of Sacramento.
Wake up.
SOCIALISTS have been in charge of California politics for years.
They are the pigs at the public trough. The eat and grunt, grunt and eat.
The more they grunt, the more they’re feed. The more they’re feed the more they grunt.
Time for California to stop the SOCIALIST PIGS from feeding at he trough.
No increase of taxes. Instead initiate dramatic cuts in the state’s budget.
Put the SOCIALIST PIGS on a strict diet. Email your representatives and demand it.
I’m sure we’ll see the same lack of fiscal restraint from the Obama SOCIALISTS.
Look at the other SOCIALIST states in the U.S. They are also billions of dollars in debt.
By the way, I left Communistafornia after 35 years , 4 1/2 years ago due to the taxes. Within the next 3 months I must reluctantly return.
Time for CHANGE in the state. Responsible change.
It’s a shame to see what these SOCIALIST PIGS have done to THE GREAT STATE OF CALIFORNIA. The Shame is on them.
RIPPER
Geez - not a great time to raise sales taxes Arnie!
Let’s see, unemployment is up, raises/bonuses are down or have been cut altogether, goods and services cost more - and thus consumers are spending less.
So now just how is this going to stimulate the California economy?
It doesn’t take a genius to figure out the trickle-down effect of a stupid move like this.
Hey Arnie - how about you and your Sacremento fat cats take a pay cut instead of screwing us hard-working Californians!!
PLEASE INCREASE THE SALES TAX. MAKE IT 15%. ITS THE ONLY WAY TO GET MONEY FROM THE ILLEGALS. SMART PEOPLE WILL FIND OTHER WAYS AROUND THE TAX.
I wonder how many of you guys complaining actually voted for him a second time around. This is bull…
What fresh Hell is this?
This is what you all deserve after voting for Obama. Obama warned you people but you didn’t listen. Obama told everyone he was going to raise taxes, so now Arnolds thinking is that if they voted for a President that will raise taxes, well then so can I. I’m loving it!!!!
Well this really blows a big one…I will not be buying anything but food and hoard my cash at home as it is not safe anywhere else. Good job Arnold! You will send the state into a depression. I will never forgive myself for voting for this idiot and george bush.
ss Says, I agree with that.
I say GO ARNOLD!!! Raise the sales tax to 30%, income tax to 50%. The only way we’ll get this goverment to control spending is if there’s no more money left to spend!!!! Take it all, because even then it won’t be enought for them!!!
My Husband has brought home 1/3 less this year. Sales have been horrible (he is in the high tech industry). We can’t afford this!! We live within our means. We have lived in the same house for 14 years in a so so neighborhood. We have made good choices and have a realistic budget for our family. Why doesn’t the state do this too? If we do not live within our means we cannot go to my Husbands employer and ask for more money because we screwed up. The state shouldn’t be able to do this either.
Sacramento needs to cut spending. They need to cut benefits to illegals!! If we denied benefits, jobs, schooling to illegals it would significantly cut our cost here in Calif.
Arnold is an idiot. I heard this guy saying he didn’t believe in raising taxes, but since there is a revenue problem he has no choice. Revenue problem? They’ve had increased revenue for the past 4 years straight. A 40% increase in revenue in the past 4 year to over $40 billion. I can’t believe that this idiot and the clowns at the state capitol want to increase the sales tax to the highest in the country. The state is already jacked up because of these fools now they want to F it up even more. They’re already driving jobs and businesses out at an alarming rate. These people are incredibly stupid.
What you spend or give matters more than what you make or take. I almost fainted when I saw the 19.5% headline.
John and Ken (KFI 640) have some plans as to how to fight the Govenors plans. Maybe they will; come up with something as they have before.
No Arnold, that wont happen. Cut spending and trim the budget.
If implemented, this may be the final nail in the coffin for many retailers.
I wonder if there are going to be bread lines and riots within a few years? Don’t laugh…if two or three years ago someone had projected major bank/brokerage failures/real estate crash/stock market crash of the magnitude we’ve experienced in 2008 alone, most would have laughed this person off as some doom and gloom buffoon…
You messed up -broke the country and now want to be a Marxist. We are Republican’s were are Marxist!! Say it proud…your are a Republican Marxist.
Quit blaming Obama. He hasn’t taken the Oath yet.
It has to do with the people that hired the illegal’s to work for half of the dollar , the illegal’s to work in the fields, in your offices. Now they all have LEGAL children that need schooling, feeding and clothing. All because you wanted you items picked cheaply so you could make a buck.
Being a Republican and calling someone names? Let the law work and clean up the people that stole Billions from Wall Street. Let’s remember that is was John Mc Cain and the Keating 5 the bankrupt Orange County in which that county has never recovered. Causing this disaster.
Blame yourself if you used an illegal to mow your lawn, pick your farms, clean your office. You opted for cheap labor. Well- there here now and they don’t want to pay into our Government. They get paid under the table with no taxes and send all their money out of our country. Who is to blame. YOUSELF!
Don’t blame Keating!
Go Republican Maxima hate.
Cut spending, the dems won’t allow that plus he is a dem.
Remember the Keating 5. They bankrupted Orange County in 1994. The county has never recovered. George Bush what did he do?
Did you hire the illegals to work on your farms? Didn’t you hire the illegals to build your houses, mow your lawns….they didn’t go home. You brought them here so you could have them work for cheap. Now they are not going home and their kids are here LEGALLY needed health care, food , education. YOU did this Mr and Mrs. HATE TAXES. You brought this on us. Now we all our paying for your wealth.
Don’t blame Obama. You are trying to blame someone from outside of your own hate. Blame yourselves. You did this.
FEDUP! said, This is what you all deserve after voting for Obama. Obama warned you people but you didn’t listen. Obama told everyone he was going to raise taxes, so now Arnolds thinking is that if they voted for a President that will raise taxes, well then so can I. I’m loving it!!!!
______________________________________________
GOOD CALL, MY MAN!!! We’re retired and fortunate enough to be able to buy a crackerbox out of state, on a 1100 mile shoreline lake–lake-front, private boat lift, good neighbors. We’ll give Schwarzie his 50 bucks on our 401K i/c tax, and the rest to a state that voted for McCain. And later, we’ll peddle our HB home at our convenience, for whatever–IF we’re then still living in what’s currently known as in the USA.
How about we just pull our heads out of the sand and look the problem straight in the face. Illegal Aliens! This state Hemorrhages billions of dollars every year in freebies to illegals. Enough is enough. I don’t care how much you tax you wil never be able to fill this black hole. The more you tax the more that come over the boarder.
Bottom line we need change and we need it now!!!
Another thing- The reason why we’re in this mess is because of illegal immigration, and Obama will be giving drivers license’s to these people too. America’s on it’s way to big changes alright!
The Sacramento politicians talk as if nothing could be cut. Let’s start with the obvious and cut all welfare spending to zero. Private charities are radically more effective at helping those truely in need, and government has no business competing with them. There are plenty of other areas to cut which are obvious to people with more specialized knowledge . For example, the State Architect has to approve plans for construction at public schools, despite the fact that the districts hire architects, contractors, and construction managers, and have in-house facilities people. Such needless duplication and bureaucracy is nothing but waste.
Cut government employee compensation
Cut benefits to illegal aliens
Cut all bilingual programs and literature
This is what you need to do Arnie.
Forget about raising taxes . Get some guts and cut, cut, cut. That’s why we elected you.
This will get deleted by the register but I;ll say it anyway.
When is Gov. Arnold Schwarzenegger going to come out of the closet and admit to the world that he is really a liberal democrat.
You know who will benefit the most is UPS because we’ll buy more on line. Save the sales tax and the gas to drive to the store.
More republican effe’ups!
Just more Spend & Tax!
Bring back Grey Davis!
This is ridiculous. Time to move out of California. High cost of living, high taxes, long commutes, jobs wages stagnant and an actor wanting to raise our taxes even more. Thanks Conan
TERMINATE THE TERMINATOR!
I think the blame for this lies less with Arnold than it does with the Democrat controlled State Assembly and Senate and with our ridiculous proposition system.
Do most voters realize that for every initiative they pass, there is almost ALWAYS a monetary component that the government will need to fund?! And who funds the government: WE DO!
California has a spending problem. Did you already forget about Prop 1A and Measure R? How can we afford these “wish” lists every time there is an Election? Somebody needs to be the adult here and just say NO! 9.25% Sales Tax in OC is ridiculous. If you want to tank this economy why stop at 9.25%…let’s gp European and have a 25% VAT and really socialize this place! I say pay the California Senate minimum wage because they sure aren’t earning their pay. Dereliction of duty comes to mind. Heck why don’t we just fire them all. Would we even notice a difference? Things would probably run smoother.
it cost $13,500/yr for each student in public schools
it cost $35,000/yr for each inmate.
And we just pass $600 mill for children hospital!!!
Look what Teacher & Police union did for California!!!
A statewide sales tax increase is the most unbiased way to collect extra funds because it affect EVERYONE. State services should be cut, as in every state employee works one day a month (or one day a week) for free. But a uniform sales tax increase means EVERYONE has to pay whether they’re male or female; rich or poor; old or young; legal or illegal.
I heard on KFWB the other day that he wanted to cut taxes for Hollywood. I couldn’t believe it. Cut taxes for all those liberal actors, who make a ton of money?? I think not!! Arnold has got to go!!
The Governator is an idiot. At the worst possible time, he wants to suppress the economy by increasing the sales tax.
He will lose more money than he gains. Consumption will decrease, salaries and income taxes will decrease. He will make a bad situation worse. It’s ironic that a governor of California has failed to learn the lesson of Reaganomics.
Come follow Gov. Arnold Schwarzenegger in raising taxes to help the economeeee as it’s your patriotic duty.
Well Arnold, I’ll just buy everything I can via mail order.
It is our patriotic duty to decrease government and spending as a voter so your income or property isn’t taken from you. Dont’ you see what is happening. The government wants to own everything and will take everything from you. It is not our duty as a citizen to hand over our hard work.
Arnold’s going dem like John Mc…has lost all sense of direction. Cut the obvious fat sitting in Sacramento and leave the kids starving educational system alone. Any new taxes will prove detrimental to recovery, as sales will drop to primal necessities only. Stop wasting public assistance on people who have no legal right to be in this country.
Recall Arnold he is a failure to us just as his republican buddies have been for the last 8 years.
We put Arnold into office to cut the budget, not increase it. He now must go back and reduce the budget, not increase taxes. “We don’t have an income problem, we have a spending problem”! ! Our budget is nearly $30b larger now than it was when we put Arnold into office.
Arnold appears to be more of a coward than we thought…
Charity start from home.. take care yourself first then others… If you have budget problem, stop borrow to help others
This is rediculas. It’s nice how the government keeps shafting the tax payer over and over again. Notice how we don’t hear about government people making over 50k a year taking a pay cut….what about all the benefits they get, such as a “living allowance” and those retired getting 80 to 90 percent of their pay. Theirs plenty of money…the government morons don’t know how to manage it.
Their was a study last year, which unfortanetly I couldn’t find, that recommended massive salary cuts…because a private sector secretary (administrative assistant) received a $25k to $35k per year, where the same job in the government salary is $80k to $85k per year.
They keep cutting all the already lean services, such as parks, school teachers (notice, not school administrators), roads….all those services that benefit the taxpayer.
Yes indeed, the bleeding does need to stop…so when is the government going to stop bleeding the people? I guess this is the standard case that stupidity wins again.
Hey people you’re going to be spreading the wealth. Isn’t this what you voted for, to raise taxes? Now you will have to live with the consequences. Remember he got the idea from the master Barack Obama. Oh I see, it’s only okay for the wealthy to pay taxes. Well you will all find out that it doesn’t work that way. Every one will be paying taxes in all different types of ways. It will now be the American way for at least 4 years. Get used to it, as you voted this in. I didn’t.
While I don’t agree with ANY tax increase at this critical time in our state’s (and nation’s) economic downturn, I was at first FLOORED the way NBC4 described the tax increase last night (like it was going up to 15%)!! My first inclination at that point was to suggest that those queer dorks protesting up in West Hollywood over a NON-ISSUE re-group and head to Sacramento to drill Ahnald!!!
I AM NOT SURPRISED BY ANYTHING OR ANYONE ANYMORE. THIS IS TYPICAL PANIC BEHAVIOR. HE IS NOT USING HIS MIND IN THE CORRECT WAY. TREAT OTHERS THE WAY YOU WANT TO BE TREATED. HOW WOULD HE LIKE IT? IF HE WERE ONE OF US! HE ISNT ONE OF US. IS THIS HIS SOLUTION? HE IS DUMBER THAN I THOUGHT. I WILL CONTINUE TO PURCHASE ONLINE, OUT OF STATE, AND FOR SURE OUT OF COUNTY. HOW SAD, I LIVE IN OC AND I GET THIS SOLUTION……… HE IS AN EMBARRASSMENT TO OUR STATE. WE HAVE SO MANY SMART MEN AND WOMEN, WHY CANT ONE GET INTO OFFICE, INSTEAD OF DIGGING AT THE BOTTOM OF THE PIT, FOR THE LEFTOVERS.
Obama wants Villaragosa to be one of his economic advisors. Bwahahahahahahhaha!!!!!
Oh here’s a thought, if we quit giving handouts to all those who are here illegally, we may not be in this situation. cut back on welfare, food stamps, free insurance and we may just get ahead…….Oh wait I forgot, nobody wantes to get into that topic of discussion……..I think I will move out of state!