Tax Crazy Gov. Schwarzenegger

Gov. Arnold Schwarzenegger, was elected in an election when Gray Davis was recalled from office for budget and tax problems.

Since then, Schwarzenegger has converted from an anti-tax crusader and now is a full-fledged tax & spender.

The Los Angeles Times reports:

State lawmakers began moving toward a deal this week to close California's deficit with the help of steeper car fees that would cost many drivers hundreds of dollars annually, according to people involved in budget talks.

Under the plan, GOP lawmakers -- most of whom have signed anti-tax pledges -- would vote to triple the vehicle license fee that owners pay when they register their cars every year in exchange for a ballot measure that would impose rigid limits on future state spending. Motorists' annual license fees would rise from 0.65% of the value of their vehicles to 2%. For a car or truck valued at $25,000, the increase would be $336.

The higher fees would generate $6 billion annually, helping to fill a budget gap that is projected to reach nearly $28 billion over the next year and a half.

The proposal is being championed by incoming state Senate leader Darrell Steinberg (D-Sacramento). Democrats and advocates for the poor have opposed strict state spending limits, saying they would cripple government services.

Steinberg may be gambling that voters would reject the limits, as they have in the past.

"We don't comment on the specifics of negotiations," said Steinberg spokesman Jim Evans, "but this much is clear: The state is $28 billion in the red and we need new revenue."

The plan would create a political quandary for Gov. Arnold Schwarzenegger, who has already proposed a flat $12 increase in annual car fees.

The last governor to triple the license fee was his predecessor, Gray Davis. Voter anger soared, and the increase played a large role in Davis' removal from office. Schwarzenegger crusaded against the hike throughout the recall campaign, and in his first act in office he cut the fee -- the "car tax," as he and some others call it -- back to its current rate.

But the governor has been adamant that the state needs new revenue. Earlier this month, he proposed closing the deficit with billions of dollars in new taxes, including a 1.5-cent sales tax increase.

Another tax scheme is to tack on a 9% "pet tax" to veterinary bills.

According to the Los Angeles Pet Examiner website:

Potentially just days from now, Governor Arnold Schwarzenegger will be moving to tax veterinary services for your pets.

According to the Governor’s website, his new budget proposal would mean “[e]ffective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services. Effective March 1, 2009, the sales and use tax rate will be applied to amusement parks and sporting events.”

While many would agree that you could fairly classify golf, amusement parks, and even sporting events as, if not luxury items, at least optional ones, how can one possibly be so callous as to suggest that veterinary services belong in the same category as golf?

Frankly, Governor Schwarzenegger is incentivizing animal neglect.

I agree. With the country in a recession, now is not the time to be taxing people to death when they are struggling to make ends meet. Concerned Californians should contact the Governor's office, their state senator and assembly member to demand spending cuts, not more taxes.