CRP Blog

Wednesday, February 13, 2008

California’s budget mess stems from too much spending, not insufficient taxes

Residents of the Golden State are among the highest taxed people in the West. Our high taxes continue to drive businesses and residents to nearby low tax states like Nevada, Arizona and Idaho.

Governor Schwarzenegger is absolutely right to concentrate his efforts to balance the budget on controlling state spending while resisting Democrat calls to raise taxes. Experience shows that tax increases rarely if ever produce the revenue anticipated, while at the same time they depress economic activity and give people more incentives to move elsewhere.

Meanwhile, government continues to grow to consume all available revenue, plus more in the form of debt. The Governor and Republican legislators are right to support reforming the state’s budget process to end the pre-programmed increases in state spending and restoring control and accountability to those who are elected to determine the size and growth of government.

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