Wednesday, May 26, 2010

CA Democrat Wants Bottle Deposit Money And To Tax Oil More To Help Balance The Budget

Yes, just what we need here in California. More freaking taxes and of course this was brought forth by a Democrat. People need that money from deposits. My mom and brother both recycle as many do around where I live. Plus don't you know that the more you tax a product or company such as oil, that they are just going to pass that on to the consumer to make up for the loss and amount they are being taxed on?? We're strapped enough as it is, especially on gas prices.

LA Times: State Assembly Speaker John A. Perez on Tuesday outlined an alternative path to balancing California’s budget that would raise oil taxes, delay corporate tax breaks and borrow billions from the nickel-and-dime deposits consumers make on recyclable bottles — and would not require any Republican support.

At the heart of the proposal is the idea of raiding the state’s bottle deposits for the next 20 years and then getting an $8.7-billion loan from Wall Street. The programs currently funded by bottle deposits would be reimbursed by a new tax on oil production.

Perez (D-Los Angeles) called his budget plan a “unique and creative approach.”
A spokesman for Gov. Arnold Schwarzenegger called it “legal gymnastics.”

Under his plan, the speaker would cast aside almost all the budget cuts Schwarzenegger proposed earlier this month. The state would use the borrowed money from the bottle deposits to fund programs this year.

To pay back the loan in the future years, the state would then levy a nearly 10% oil severance tax.

H/T Mish Shedlock and Lonely Conservative

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