Sales tax increase is wrong way to solve budget crisis
In this economy, increasing sales tax would add to consumer burden.
07/19/08 00:00:00

There are many ideas being floated in Sacramento to solve the state's financial crisis, but the one to raise the state sales tax should be taken off the table immediately. While we support a combination of revenue increases and program cuts to close the budget gap, it's the wrong time to raise the sales tax.

This is a tax that affects every part of our economy, and it needs to be increased in a thoughtful way so that it benefits everyone -- not to make up for lawmakers unwilling to make needed spending cuts during tough economic times.

In this economy, increasing the sales tax would add to the consumer burden. The sales tax is regressive and would fall disproportionately on those with the least ability to pay.

In addition, local governments have used the sales tax to fund all sorts of programs, and taxpayers have gone along. But you can't keep raising the sales tax indefinitely.

Everyone is being asked to sacrifice, and government must make cuts in its programs. We also support increasing some taxes and fees and closing loopholes that benefit a few taxpayers at the expense of the rest of us.

State legislators are looking at a plan to borrow money from transportation and local government services. But Gov. Arnold Schwarzenegger said that would require adding to the state sales tax to ensure that the money is repaid. He said he opposes that idea but told the Los Angeles Times that he might reluctantly sign off on the scheme if that's the only way to get a budget.

The governor's first instincts were correct. Don't do it.

Today is the 19th day since the beginning of the fiscal year without a state budget. Instead of getting closer to a solution, lawmakers seem paralyzed to compromise. Maybe they are thinking that if they lob oddball ideas into the mix, they will get magical solutions.

Balancing a budget isn't magic. It takes hard work and shared sacrifice.

Now lawmakers are getting well-earned derision from the public. They can turn that around by making difficult funding decisions.

It will be painful for them to come up with a fair budget that takes into account the lack of money available. But that's their job.

Cuts will hit crucial areas -- schools, prisons, health care and social programs -- because that's where most of the money is spent.

It's time to get a budget -- without a sales tax increase.

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