Arnie Pledges Not To Raise Taxes In First Campaign Speech

by Mike Godfrey, Tax-News.com, Washington

22 August 2003

Taking the stage for his first speech in his campaign to become California's next Governor, Arnold Schwarzenegger pledged that he would not seek to raise taxes whilst in office, and outlined plans to reduce the regulatory burden on business in the state.

Speaking at a Los Angeles news conference this week, Schwarzenegger told reporters: "Am I willing to raise taxes? No. More taxes are the last burden to put on the backs of the people of California," although he added that he could not completely rule out the possibility of tax increases in the future.

Schwarzenegger also told the press that his first priority on assuming office would be to summon a special session of the legislative council, aimed at improving the business climate. The actor gave very little else away, save for his intention not to cut the education budget.

Schwarzenegger is being advised by a high profile team of economists and business leaders, including former Secretary of State George Schultz, and investment guru Warren Buffett, one of the world's wealthiest men.

Buffett managed to create a certain amount of controversy last week by suggesting that California's property taxes were too low. This prompted speculation that he supported the idea of scrapping Proposition 13, which has kept the state's property taxes relatively minimal over the last 25 years. This, unsurprisingly, was not particularly well received within the Republican ranks.

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