Schwarzenegger to Raise Taxes?

This might be the last straw for California conservatives who aren't fond of Gov. Arnold Schwarzenegger. From the Los Angeles Times : SACRAMENTO -- As Gov. ...
by | May 5, 2008
 

This might be the last straw for California conservatives who aren't fond of Gov. Arnold Schwarzenegger. From the Los Angeles Times :

SACRAMENTO -- As Gov. Arnold Schwarzenegger continues to say publicly that he will hold the line against new taxes, his administration is laying the groundwork for a possible tax increase.

Administration officials are soliciting advice from business groups and other special interests on how to propose billions of dollars in tax hikes that could help close a budget shortfall the governor now says is as large as $20 billion.

Schwarzenegger's staff is exploring a range of options, including sales taxes on lawyer and accountant services, on high-end services such as golf lessons and personal-trainer sessions, and on takeout coffee and other prepared foods that are not taxed now.

The administration's goal, participants in the discussions say, is to gather support for new taxes from a broad spectrum of the business lobby, giving the Legislature's Republicans political cover to break their pledges never to vote for them.

Josh Goodman
Josh Goodman  |  Former Staff Writer
mailbox@governing.com

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