Democrats in California’s legislature are looking for ways to balance the budget. If you or I were spending $28 billion more than we were taking in, we would cut spending. But that’s not how Democrats in Sacramento approach the problem.
Instead, State Senator Darrell Steinberg wants to allow local school districts to impose income taxes in California. On the bright side, if such legislation were to pass California would likely end up with the top rating…as the worst business environment in the country.
Perhaps Senator Steinberg should look at an op-ed written by the president of CKE Restaurants, Andrew Puzder. Mr. Puzder asks how California can add jobs, and notes that cutting regulations, taming lawyers, and reducing the tax burden are essential. “We have some of the highest tax rates in the nation for businesses and personal incomes.” I doubt Mr. Puzder would say that adding local income taxes would help California businesses.
Luckily, it appears that Republicans in the state legislature are holding firm on their pledge for no new taxes. It’s likely that this, and the proposed tax on soft drinks, will both fizz out.