Terminating Taxes

Gov. Arnold Schwarzeneggar, who long ago abandoned his pretense of being even a moderate Republican, is wavering in his commitment to terminate tax proposals in California:

Aides contend that the governor has kept his word on that key GOP issue by raising fees, not taxes. But the fees he has backed — including some amounting to billions of dollars that were included in his failed healthcare plan — are essentially the same thing, say many Republicans and antitax groups.

The governor, who in January promised, “I will not raise taxes on the people of California,” later said he agreed with the nonpartisan legislative analyst’s suggestion that the state collect more tax money by cutting or reducing some “loopholes.”

This month, he said “everything is on the table” in budget negotiations with the Capitol’s dominant Democrats. He cited as an example a demand by state Senate President Pro Tem Don Perata (D-Oakland) to increase sales taxes.

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