Thursday, December 18, 2008

Cailfornia Democrats Need to Face Reality on Tax Increases

By John W. Lillpop

California Democrats believe they have found a way to side step the two-thirds requirement for raising taxes: Instead of calling taxes what they are, call them "fees."

However, in these difficult times, California needs real solutions, based on prudent fiscal policy, rather than "word parsing."

When it comes to higher taxes, state Democrats would do well to emulate President-elect Obama who concedes that raising taxes hinders economic recovery during bad economic times.

Republicans have a plan titled, "Republican Special Session Budget Plan," which includes $6.5 in revenue measures and $16.5 in spending reductions.

Together, these Republican-proposed actions would reduce the budget deficit by $22 billion-- without tax hikes.

In addition, the Republican plan proposes positive structural reform to ensure that California will never again face a devastating budget shortfall.

California's best hope for solving the current budget crisis and avoiding similar pain in the future is found in the Republican Special Session Budget Plan.