Schwarzenegger's Folly

Floor Speech

Mr. McCLINTOCK. Mr. Speaker, California's Governor is seeking billions of dollars of additional Federal funds in order to fill his ever-widening budget deficits.

Last April, he imposed the biggest tax increase by any State in American history, despite repeated warnings of the damage it would do to the State's economy. California already had the highest sales and income taxes in the Nation. He increased both.

The taxes were supposed to produce $13 billion of additional revenue. But after 9 months, California's sales tax collections are down $270 million; income tax collections are down $10 billion. The only major tax not raised, the corporate tax, is the only tax that is producing more revenue. That is up $2.4 billion in the same period.

I have a modest suggestion to Governor Schwarzenegger: rescind the tax increase that has crushed California's economy and its revenues. And to my House colleagues, let's not repeat Governor Schwarzenegger's folly nationally.

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