Budget Revenue Is Not the Problem

Published July 9, 2008

The budget debate should center on how to reduce and cap ballooning spending, rather than how to increase revenue (“Panel OKs budget with tax increase; GOP will be hurdle,” July 9).California doesn’t need to raise taxes … and frankly can’t afford to raise taxes, especially considering the state has the third highest unemployment rate in the country.

Some in the legislature disingenuously argue there is a revenue problem, but the facts say otherwise. Since Gov. Schwarzenegger took over in 2003, the state’s general fund has grown by more than 33 percent, roughly $25 billion.

Saddling families and businesses with the weight of additional tax burden at this time would be a brutal policy blunder. If legislators really want to fix the fiscal problems, they need to inject tax and expenditure limits instead of continuing to parade the budget around as a revenue problem.

John Nothdurft ([email protected]) is the budget and tax legislative specialist for The Heartland Institute.