Only hours after being sent a package of tax increase bills by the Legislature, Governor Arnold Schwarzenegger held a news conference yesterday to announce that he would reject the Democrats’ flim-flam. The flim was the unlawful tax increases. The flam was the parody called “economic stimulus.”
The Governor said the package “fell short on every single level,” and in particular called out the obvious lack of reforms that would aid the state in recovering from the economic recession. He indicated that the package did not include economic stimulus provisions that were needed, including relaxed state workplace rules and streamlined environmental laws to expedite public works projects. The Governor’s summary of the Legislative economic package: “It actually doesn’t do anything and it makes it more difficult, actually, to do certain projects.”
The Governor also indicated his displeasure with raising taxes on working families during an economic downturn. In fact, the tax increases approved by the Legislature are a slap in the face to voters, who (1) rejected Proposition 56 in 2004, which would have eliminated the two-thirds vote requirement for state tax increases, and (2) rejected Proposition 87 in 2006, which would have imposed an oil severance tax similar to the one approved by the Legislature yesterday.
The Governor appropriately called the Legislature on its attempted subterfuge. Now it’s back to the negotiating table to navigate a solution that keeps faith with voters, the Consitution and the fragile California economy.