Tax increases in NY and CA

[dimetime]

Both New York and California have the highest taxes in the country. These two states are also the states which are dealing with a large budget deficits. They are now even considering the possibility of raising taxes to make up some of the difference.
New York states income tax rate is 6.85% and California which has the highest income tax rate of 10.3%. Goverment spending in these two states also top national charts.
New York is in the red this year by over 6 billion dollars and California is a wopping 15 billion dollars in the red. Some say that in a matter of about three years California will be in the red by more than twenty five billion dollars.
After many weeks into the fiscal year California has yet to pass a budget.
Democrats in Sacramento have advised a plan to impose a series of new taxes on business and people who recieve an income which is above one million dollars. This plan would make the income tax rate 12% and the highest in the nation. This new tax law would also prevent businesses form carrying forward losses against profits of the future.
Governor Arnold Schwarzenegger back in August promised the people that taxes would not be raised, though now that promise is to be broken as he proposed to increase sales taxes by 1%. Though because in California the state laws says that a two thirds majority is needed to pass a budget which will give the Republicans the leverage to block such tax hikes. Shut downs such as this may be the only way to make everyone realize that spending restraints are needed.
Those millionaire will face a 1% increase in income taxes while those who have more than 5 million dollars would face another .85 point hike. There would also be a new business tax of 4% which would also apply to hedge fund managers.
Democratic Governor David Paterson seems to be the only one fighting to stop tax increases and stop the spending.

If over spending is stopped then there would be no need for any extra taxes to be put onto people or businesses. Everyone must face the fact that the economy right now is in aweful shape and we must do all that we can to save as much as possible. Putting taxes on people will only make matters worse. The over spending is what must be stopped.

[dollardaze]

I agree with you, homealone. The budget deficits for our state and federal governments are outrageous and those government officials must see the error of their ways and quit saying 'yes' to themselves and others who keep asking for money and just quit spending!! They seem to think that we have a never-ending supply of cash, when in fact the budget deficits just keep growing larger and larger.