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Gov. Schwarzenegger Calls For 'Temporary' Sales Tax Increase In California 2008-11-06 15:59:02 (96 weeks ago) Posted By: Intellpuke (Read 549 times || 0 comments) Gov. Arnold Schwarzenegger unveiled a plan Thursday for a steep sales tax increase and deep cuts in services to wipe out a budget shortfall that is expected to swell to more than $24 billion by the middle of 2010. The linchpin of the plan is the sales tax increase of 1 1/2 cents on the dollar, which could raise more than $10 billion through fiscal 2009-10. Such a tax is likely to face resistance from Republicans, who blocked a smaller increase proposed by the governor last summer and have vowed to continue to do so. Schwarzenegger also proposed extending the sales tax to appliance and furniture repair, vehicle repair, golf fees, veterinarian services, amusement parks and sporting events. He proposed a 9.9% tax on the extraction of oil from California ground, the expansion of sales tax to some services, and a 5-cent-per-drink tax on alcohol. His plan also includes a $12 increase in annual vehicle registration fees. The governor also wants a number of significant spending reductions, including cuts of $2.5 billion from schools and community colleges. And he proposed eliminating dental insurance for poor adults on the state's MediCal program and lowering subsidies to the aged, blind and disabled. California's welfare subsidies would also be reduced. Sales tax in Los Angeles would shoot up to 10.25% if the governor's newest plan were to be approved. That would include a half-cent sales tax hike that Los Angeles voters apparently passed on Tuesday to fund transit projects. The statewide sales tax rate is 7.25%. (story continues below) Your Ad Here Make a donation today to remove the advertisments! This Story Has Been Archived. To read the full story in the archives, please make a donation. Log In Now Admin Functions Edit Story Email To A Friend Email this story to a friend: Your Name: Their Email:   Related Stories (βeta) Gov. Schwarzenegger Declares Budget Emergency, Proposes Deep Cuts 2010-01-08 18:08:44 (Score: 76) Gov. Schwarzenegger Plans $2.8 Billion In Cuts, $680 Million Of It In School Funding 2009-05-29 17:52:15 (Score: 62) U.S. Home Sales Jump 7.6 Percent 2010-05-24 15:42:21 (Score: 53) California's Jobless Rate Jumps To 8.2 Percent 2008-11-21 16:36:54 (Score: 50) Facing $20 Billion Shortfall, Schwarzenegger's Staff Exploring New Taxes 2008-05-02 15:17:36 (Score: 49) Toyota Sales Slump 10 Percent Amid Recall 2010-02-02 17:35:08 (Score: 48) Gov. Schwarzenegger Outlines Drastic Budget Cuts For California 2009-05-15 14:37:21 (Score: 47) California Weeks Away From Running Out Of Money 2008-12-31 03:48:11 (Score: 47) Gov. Schwarzenegger's Budget Plan 2003-11-18 03:30:01 (Score: 47) Home Prices In Southern California Slide To 2004 Levels 2008-04-15 15:57:20 (Score: 46) California's Stimulus Funding Starts To Run Dry 2010-07-12 14:03:20 (Score: 46) Gov. Schwarzenegger, Legislators Reach Budget Deal 2008-09-19 10:51:15 (Score: 46) Gov. Schwarzenegger Signs $145-Billion California State Budget 2008-09-24 02:32:22 (Score: 46) With No Budget, California Enters Uncharted Territory 2008-09-01 14:40:13 (Score: 45) Californians May Get IOUs From State Instead Of Tax Returns 2009-01-07 16:40:02 (Score: 45)   Readers Comments Add your own comment. (Anonymous commenting now enabled.)

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