California budget impasse goes on!

The California budget impasse goes on! Gov. Schwarzenegger and the Democrats need one more Republican vote and the Republican legislators are budging.

From the Wall Street Journal.com:

The impasse has revolved around a bill, out of the nearly 30 in the budget proposal, that would generate $14 billion in revenue by temporarily raising the sales tax by one percentage point, by increasing the gasoline tax by 12 cents a gallon and by adding a surcharge of up to 5% on income taxes, among other steps. Republican legislators have contended that Californians can't afford new taxes during the recession, while Democrats countered that it would be impossible to close such a massive deficit without revenue increases.

Many economists agree, raising taxes during a recession is insane and the California taxpayer is already overtaxed. They will need to do more spending cuts.