Sunday, March 15, 2009

Are New Taxes Enough To Save California?

A month later after legislators passed a $12 billion tax increase to help overpass the $41 billion budget deficit; Democratic lawmakers are now proposing more tax and fee measures that could help even out the devastating cuts to state programs. Under the new proposals, plastic bags will include a 25 cent fee; 50 cents per ounce on marijuana, tax on alcohol and pornography. In the Los Angeles Times, “beverages such as Smirnoff Ice are supposed to be taxed as liquor”. However manufactures are changing their recipes to continue being held without tax. This move was to make about $38 million in annual revenue for the state. With fire season approaching, Gov. Arnold Schwarzenegger plans on even raising property insurance to 2.8 percent annually. According to the San Diego Union Tribune, this measure will generate 28 dollars per homeowner annually. All these new fees and taxes are to help California’s educational system which according to Assemblyman Curren Price in the San Francisco Chronicle, “should be our main priority ... we frequently are shipping funds away from education”. Imposing new taxes will generate California more money annually but leave its people bankrupt.

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