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August 26th, 2010 | |||
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Tax Swap Would Hurt
Middle-Class the Most Earlier this month, Liberals proposed a budget “solution” they believed would lower your taxes—but only by raising them first. The plan would increase state income and vehicle taxes, but would decrease state sales tax. They claimed that taxpayers would find savings in federal deductions and lower costs on purchases. After a through examination, the nonpartisan Legislative Analyst’s Office (LAO) found that the plan would actually raise taxes on middle-class Californians. In fact, the LAO predicted that taxpayers earning between $20,000 and $200,000 annually would suffer a collective $1.6 billion tax increase next year. This is typical in the Legislature: if it sounds too good to be true, it probably is. We must drop the gimmicks and focus on finding real budget savings. Pulling the wool over the eyes of Californians with complicated maneuvers and fishy schemes is no serious attempt to close a $19 billion budget deficit. I encourage you to review the LAO’s report by visiting www.lao.ca.gov.
Common-Sense Reforms to
Cut Waste and Abuse Will
Help Reduce State
Overspending California’s budget is more than 50 days overdue, and the state is facing a cash crisis. The Controller has warned he may have to soon issue IOU’s to vendors and taxpayers. Republicans stand united behind a
responsible plan that sets priorities
and reduces spending through
reform.
Consider that Medi-Cal recipients
currently pay nothing for health care.
Adding a $3 to $5 co-pay for prescriptions,
and standard co-pays for
doctor visits, could save $300 million
annually.
Taxpayers also pay $5.7 billion to In-
Home Supportive Services providers
for basic care for low-income
Californians. This program is ripe
for fraud and abuse. Adding a doctor
certification could save $750 million
dollars.
Republicans have also proposed
reducing CalWORKS – the program
that provides cash benefits to welfare
recipients – by $1.6 billion. There
have been recent reports of welfare
recipients being caught using government-
issued debit cards at casinos
and strip clubs. Even in the face of
these abuses, Democrats have rejected
reform.
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