Most Californians In Favour Of Rasing Taxes Says Poll

by Leroy Baker, Tax-News.com, New York

27 April 2004

Reflecting the widespread sentiment that Governor Schwarzenegger cannot cure the state’s fiscal crisis with spending cuts, most Californians have said they are in favour of some form of increase in taxation in order to close the state’s $14 billion budget deficit, according to a poll conducted by the Los Angeles Times.

The poll found that 69% of those who took part were in support of higher taxes for the wealthy, whilst nearly 80% supported additional ‘sin’ taxes on cigarettes and alcohol. There was less support for an increase in the sales tax however, with respondents equally divided on the issue.

As part of a contingency budget prepared by State Treasurer Phil Angelides in February in the event of the Californian electorate rejecting Schwarzenegger’s $15 billion bond plan, it was proposed that a 10% tax would be levied on single taxpayers earning more than $140,000 per year, and an 11% levy on those on incomes over $280,000.

In addition, Angelides proposed the introduction of a 0.25% sales tax that would remain in place for three fiscal years.

However, whilst this emergency measure was avoided, the LA Times poll found that 61% still expect taxes to be increased by the Governor, echoing the widely held belief that Schwarzenegger’s pledge to tackle the deficit by cutting spending rather than raising taxes was unrealistic.

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