The Golden State still faces a $24 BILLION deficit and is now only 8 days away from simply running out of cash. Yet as if to prove they learned nothing from the voters rejection of $16 BILLION in tax hikes, Democrats are seeking:
$830 million in a new oil severance tax,
$1 billion in tobacco taxes, $76 million in fire fees,
$125 million in vehicle license fee increases for state park passes and
$80 million in corporate loopholes.
Let's take a few moments to examine what a new "oil severance tax" would cost California families. Keep in mind that Californians are already the highest taxed families in the nation and they already pay 35.3 cents in state taxes per gallon of gasoline.
Gasoline prices passed the $3 mark, becoming the highest in the continental United States.
While Californians are already feeling the pain at the pump, Democrats plan to place a 9.9% tax on oil translating into an addition 17 cents per gallon of gasoline.
At a time when we have over 2 million unemployed Californians and with foreclosure notices at 203 per day, our families need solutions not more ways on how to take their money.
For the last seven straight weeks gas prices have risen over 56%. It is the fastest rate increase ever. Taking more money away from families though higher taxes is not the solution, nor should it be the answer to every problem.
$1 Increase In A Barrel Of Oil = 2.4 Cent Increase In The Gallon Of Gasoline
‘The gasoline rise is like a tax we feel very painfully every time we go to a gas station,’ said Ed Leamer, director of the UCLA Anderson Forecast. For consumers struggling to regain their confidence, ‘it adds uncertainty. It will tend to retard the economic recovery and make it less powerful.’”
Instead of returning to a government limited in size and scope; instead of pursuing policies that stimulate economic growth and prosperity; instead of listening to the people of California who said NO MORE TAXES, NO MORE BORROWING, the democrats budget solution is simple: Raise Taxes.
“The goal is to increase revenues by several billion to help bridge the state's projected $24 billion budget gap. Noreen Evans, chairwoman of the joint conference committee, said the goal is to pass some or all of the revenue-raising proposals. ‘The problem is that this economic crisis was caused by an enormous and rapid drop in revenues, so to ignore the need for new revenues is irresponsible,’ said Evans, D-Santa Rosa.”
Remember: It was just February when the Legislature passed $12 BILLION in new taxes. California doesn't have a revenue problem, it has a spending problem. If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.