MEMORANDUM
To: Governor Schwarzenegger at the State Capitol
From: Jon over at the FlashReport
RE: Massive Democrat-Created State Deficit
Governor, there is no doubt that the liberal Democrats who largely control the budget process have taken California down a path of severe over-spending. As we all know, state spending has massively out-paced state tax revenues, increasing a staggering $25 billion since 2003.
Out of the gate this year, you correctly identified this problem for what it is, too much red ink. Too much overspending. You made it clear that California families, taxpayers, would not be saddled with higher taxes in order to address this chronic overspending issue. You rightly introduces a budget that represents a 10% across-the-board cut to what would have been the ’07-’08 amounts (from our perspective, a modest proposal). As a companion to your proposed budget you introduced a balanced budget amendment for California, that if enacted, would help to ensure that we don’t end up back in this same, unfathomable position.
Your fellow Republicans in the State Capitol have rallied to your position — making it clear that there is no way that a tax increase (let alone a new tax) would get even a single Republican vote. Thanks to the wisdom of California voters, it takes a 2/3 vote to pass a tax increase, and so none will ever reach your desk for you to veto!
That said, I wanted to drop you this memo because I keep getting feedback from FlashReport readers from up and down California who are a bit confused. Overall, your messaging on the budget is right on target. But of course the liberal media likes to pick up on anything that you might say that hints about a willingness to solve this problem by sticking it to California taxpayers.
My readers have expressed clearly to me that they appreciate your firm commitment to not increasing the tax burden on them in order to deal with the state’s massive deficit, and many have said that they would prefer an endless budget stalemate all the way to the November election if that is what it takes.
But there is concern because the folks in the media are trying to portray that you are willing to raise taxes. But they are using your own words. Governor, we know you don’t like to get caught up in semantics — but "closing tax loopholes" is liberal-speak for raising taxes.
At a recent townhall meeting, you apparently breached the subject of "broadening" state sales taxes to make them apply to more areas. This is another tax increase proposal, Governor!
From our perspective, it’s actually really simple. State government "revenues" generally come from one source — taxes. Anything you do to "increase revenues" does two things: (1) it’s a tax increase, pure and simple, and (2) it is a rejection of your stated premise, that we must solve this budget crisis through spending cuts, not tax increases that punish working Californians for the largesse of the liberals who dominate the state legislature.
To quote Milton Friedman:
With the Democrats in charge of the legislature, we know that needed tax cuts will never be put on your desk. But the good news is that because you are our Governor, you can ensure that no tax increases or "revenue increases" become law, either.
Thanks for taking the time to read this note, and for all of your tireless hard work.
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