Capitol Hill Blue Forums Political Issues Finance, the economy & Economics Schwarzenegger proposes tax hikes

I agree about the libraries. But I think that in addition to closing luxury loopholes, it might be wise to consider a good old-fashioned luxury tax.

For example: find an annual average for a restaurant dinner and tax anything over that. Got a family of four and a car that seats six? Set a two-seat car surplus tax. Spinning rims would go up in price.

Any durable good that costs more than the average income for a single Californian? Major tax unless it's a utilitarian medical device.

Call it a "Starbucks tax."

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Closing libraries and swimming pools is "cutting off your nose to spite your face." the last thing we need in even more illiteracy, nor should we encourage couch potatoes and vandalism. Where I live there is an excellent recreation center: half olympic-sized swimming pool, sauna, steam room, etc. It is one of the few things for which I am happy to pay property tax. It stays open late ---- until 1 AM in the morning. Between 11 PM and 1AM, you can get in for two bucks. Instead of getting drunk, making a nuisance of themselves, and committing vandalism, the teenagers and young people go to the rec center to exercize and socialize. Such amenities are a sound investment!

I agree with Julia about taxing non-necessities, but it must be done in a way that is not an adminstrative nightmare. Europe has VAT (value-added taxes), and Canada GST (goods and services tax): essentially, whenever a transaction takes place, there is a flat percentage tax. VAT is fine as far as it goes, but it is still more onerous to the poor than to the rich. To compensate, certain classes of goods and transactions should be free of tax ---- books and basic foodstuffs, for example. Also, obvious luxuries should have heavy extra taxes. I feel enormous indignation about things like cosmetics, fancy clothes and luxury cars. They should be taxed into the stratosphere --- and beyond! I have forgotten how much Americans spend on cosmetics each year, but it was a figure that provoked outrage in me.

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More details of Schwarzenegger's plan:


Los Angeles Times

Hmmm, a republican in favor of raising taxes? I thought they were adverse to such things.

Boney, the GOP members of the state legislature have vowed to never approve a tax hike, no matter what. They have the power under the state constitution to block any tax hikes.

The truth of the matter is that certain cuts have to be made. If you don't make it in places like libraries and public institutions like pools and parks, you have to make it at hospitals, police stations and firefighting stations.

I am not in favor of raising taxes any higher in California for benefits that a basically junk.

That is one thing that I can back the GOP on. While I didn't vote for state representatives in my district this time around, I don't think it would have mattered since Ventura county is pretty conservative (at least Simi Valley is)

I am assuming that you live in California, Kap, since you have such strong opinions about what tax policy to follow here.

I am not clear what you refer to as "junk", however. Can you clarify?

For one, the response time at any government institutions is a joke. Waiting in line for 4 hours to show proof that you did traffic school (I don't know why I couldn't do that online but there was no option) is junk.

Well, last time I went to DMV it took me 5 minutes. But apart from that, how would cutting staff at DMV help the problem?