California Issues - California's State Budget

Raising Taxes Will Not Solve California’s Budget Problems

   Lawmakers returned to Sacramento this month facing the undeniable reality of a $14 billion state budget deficit.  We cannot ignore the inevitable any longer.  Democrats and Republicans must summon the courage to make the tough but necessary decisions to reduce spending to save our state from a financial meltdown and to actually live within our means.

   California stands at the brink of bankruptcy for one simple reason – the liberal Democrat majority has been spending way too much, for too many years.  While we have experienced a downturn in the housing market and a slowing economy, that is not the cause of our problems.  In fact, over the past four years, tax revenue grew by 40 percent or nearly $29 billion. 

   At the same time, Sacramento Democrats spent all that money and more in an irresponsible spending spree that shows just how out-of-touch with reality they really are when it comes to spending taxpayer money.  With an attitude of spend now and figure out how to pay for it later, Democrats increased spending over the last four years by a whopping 44 percent, or more than $31 billion, running up the massive deficit California faces today.

   If California families spent more than their paycheck every month, they would quickly max out their credit cards and run up a significant debt.  Sacramento Democrats have been doing just that for many years and the tab for their spending is finally coming due, only it is taxpayers who will be stuck with the bill.

   California has a spending problem, not a revenue problem, and it is vital that we take prudent steps together to get out of our budget mess once and for all.  Hardworking Californians expect us to work together, in a bipartisan manner, to solve our problems.

   Unfortunately, Democrats want to pass the buck again by forcing taxpayers to pay billions in higher taxes so they can spend even more.  Just last month, they passed a massive $14 billion government-run health care plan that will be paid for with $8.5 billion in higher taxes and result in higher insurance rates for all Californians. 

   To address the budget deficit, Democrats have proposed a $500 million tax increase on purchases made over the Internet, along with a $6 billion hike in the car tax.  They have also suggested eliminating the state mortgage interest deduction, a $5.3 billion tax increase that will cause significant hardship for many families.  Enough is enough. 

   Californians are working hard, playing by the rules and paying their taxes.  Republicans believe it is our duty as lawmakers to spend your tax dollars wisely, not as if it’s part of some slush fund for the majority party.  The only way to stop wasteful spending now and forever is to keep the money with those who earned it - taxpayers. 

   This year Republicans will continue to advocate for responsible budgeting.  We believe the only way to get out of this mess is to stop runaway overspending, reject new programs we can’t afford and live within our means.  In the coming weeks, we will work with Governor Schwarzenegger to take a hard look at our current spending and evaluate every possible spending reduction available.

   Lawmakers must work across party lines to make significant progress in reducing the deficit.  Our state is facing a financial crisis, but by working together to tighten our belts and reject the failed ways of the past, we can restore fiscal health to California and make our state an economic leader once again.