Signs of the Recession: Tax or Die, Sez Analyst

The California Legislative Analyst’s Office, which among other tasks offers nonpartisan analysis of the fiscal impact of different bills and state initiatives, has concluded that unless taxes are raised, the state will face an annual $22 billion budget deficit for the next six years. Among other strains, the state faces a rising number of newly poor people applying for health care and social services, as well as local governments, starved of revenue from the housing bust, clamoring for help. The LAO didn’t go into too many details, sez the Chron, but vaguely suggested a five percent rise in the state income tax, as well as boosting the vehicle license fee. Remember: gutting the vehicle license fee was the first thing our charming governor did when he got into office. Now, Schwarzenegger has proposed some new taxes of his own, but Republican state legislators remain adamant in their opposition.

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