Arnold Schwarzenegger ran for re-election promising not to raise taxes. Just months after winning re-election, he's come up with a socialized health care plan that will require the largest tax increase in California history: massive new taxes on doctors, hospitals, and small businesses.
What to do? Admit that he lied when he promised not to raise taxes? Of course not. Just get some help from George Orwell: new taxes are now called loans! Never mind that Schwarzenegger's massive new taxes have all the characteristics of taxes and none of the characteristics of loans (interest, repayment, etc.). Why loans? Why not call them fluffy pink ponies?
The farcical reneging on a campaign promise isn't the only reason Schwarzenegger is going Orwellian. The California constitution requires a two-thirds majority in both houses to pass a tax increase. There are (barely) enough conservatives in the legislature to block this tax hike. The two-thirds requirement has saved California from really bad tax hikes many times in the past. Schwarzenegger believes the California courts will be stupid enough, or leftist enough, to ignore the requirement as long as he calls the taxes fluffy pink ponies or loans.
John Fund has more.
The experts agree We're going Full MMT So start buying gold Mauldin Economics on the prestigious Camp Kotok economic gathering: ...
Gothamist : A 58-year-old taxi driver killed himself in his Queens home this month, marking the eight suicide in the taxi industry this yea...
Everyone who does retirement planning thinks about about asset allocation. But often overlooked is the importance of tax diversification. It...