Tweet
Matthews of the LA Times asks some good questions. "Question: Should the budget deal that state lawmakers make this summer include pension reforms that hurt a key Democratic constituency (public employees and their unions)? Should the deal include tax increases on corporations and high-income earners, a proposal that Republicans oppose? Or should there be a big new rainy day fund and major cuts to health and human services program?
The answer: Yes -- to all of them."
The problem with his answer is that tax increases will harm job creation and hence revenues. We already know that Arnold attempt to raise taxes is part of the reason we have historically high unemployment and revenues have DROPPED.
Matthews thinks fiscal policy is based on multiplication. In fact, government fiscal policy, as Arnold has proved, is based on subtraction. Raise taxes on gas and oil? That would make it harder on the poor and middle class to live in California. Is that what Matthews and Times is proposing, to punish families and small businesses?
California can not afford another dime of tax increases, on anybody. On the other hand, if we wanted to push California over the edge and into insolvency--this would do it—immediately.
More...
The answer: Yes -- to all of them."
The problem with his answer is that tax increases will harm job creation and hence revenues. We already know that Arnold attempt to raise taxes is part of the reason we have historically high unemployment and revenues have DROPPED.
Matthews thinks fiscal policy is based on multiplication. In fact, government fiscal policy, as Arnold has proved, is based on subtraction. Raise taxes on gas and oil? That would make it harder on the poor and middle class to live in California. Is that what Matthews and Times is proposing, to punish families and small businesses?
California can not afford another dime of tax increases, on anybody. On the other hand, if we wanted to push California over the edge and into insolvency--this would do it—immediately.
More...