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Cal. Democrats plan to increase taxes
 Democratic legislative leaders are planning to use a series of complex legal maneuvers to raise Californians' gas, sales and income taxes over the objection of Republican lawmakers, who have been able to block such proposals in the past.
There would also be new taxes aimed at oil companies. The proposal, described by Capitol insiders who were briefed on it, will be voted on in the Senate and Assembly tonight. It is part of an $18-billion package of fee and tax hikes and spending cuts intended to address a budget deficit that is projected to grow to nearly $42 billion through mid-2010. The plan relies on loopholes in the law that allow legislators to increase levies with a simple majority vote - as opposed to the two-thirds vote typically required - under very narrow circumstances. Obtaining a two-thirds vote to pass tax increases would require some GOP lawmakers to break their no-tax pledges. Democrats would justify implementing the taxes with a simple majority by calling some of the revenues "fees" that pay for particular programs. Such fees can be put into effect without GOP support. They are also planning to take money from existing fee accounts, use it to balance the budget and then replenish the accounts with higher fees. Such proposals have been floated in past budget crises but never acted on out of concern that they would unravel in court. If the plan is approved, GOP lawmakers and anti-tax groups are expected to file legal challenges.
Posted by: Fred 2008-12-18 |
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