Monday, March 28, 2011

Why Governor Brown Should Just Push A Tax Hike

The game of chicken that is being played in Sacramento is really annoying. The game is who will blink on the attempt by Democrat governor Jerry Brown to force four Republicans to vote on extending an array of tax hikes. The tax hikes were part of a budget "deal" two years ago between then governor Benedict Arnold Schwarzenegger and the Democrat-dominated state legislature. They include and not limited to a 1/2 cent hike in the state sales tax and increase in the Vehicle Registration Fee. As part of a scam, the issue was put to the voters in a special election in 2009. Not surprisingly, the voters rejected the attempt to have this "temporary" tax hike extended for five years. Thus, the "temporary" tax hikes only are until this June. And they will expire. But, Gov. Brown made a crazy campaign promise. That he would not raise taxes unless the issue was put to the voters. I guess Gov. Brown thought, hey, no one is against putting the issue to the voters, right? Well, the funny thing is that Californians are not ready to keep their "temporary" tax hike for another five years. And Gov. Brown is blaming surprisingly united legislative Republicans for not letting the people decide. And the further the chances that the legislature will vote to have a special election in June, and people realize what is at stake, they are leaning against voting to keep the "temporary" taxes for another five years. So, my thought is that Gov. Brown should just go to the legislature and demand whatever tax hikes he wants to close the $26,000,000,000 deficit. Why does he need voters to vote on it? He can just take a look at everything and determine that what he wants in taking the issue to the voters is not enough. That even more taxes need to be raised. Again, this is a game of chicken. Gov. Brown does not want to be the one to blink. He does not want to be the one to propose an even more onerous, and more than likely permanent series of tax hikes. Yet, I think that he will have no choice. I do not think that he has the stomach to cut the bloated state budget the way that it needs to be. After all, the state labor unions that fought to get him in office did not do so to have him cut their jobs and benefits. So, just say that to the people, Gov. Brown. If you believe that more cuts would be damaging, just tell the people that what he wanted to do will not work. That he needs to create new "revenue streams" so that he does not have to make the kind of cuts that are, in reality, needed. Until then, expect the game of chicken to continue. And the people will be less inclined to vote for extending "temporary" tax hikes. Oh what a tangled web Gov. Brown spun for himself!

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