The budget fight has touched just about every single person with an interest in the fiscal policy of the state and that includes strippers, porn stars and others in the adult entertainment industry. The Democrats are trying to find ways to raise revenue and avoid having to cut even deeper than they already have into essential programs and education funding. That means "sin taxes" and other sales taxes and fees. LAT:
As state leaders hunt for politically palatable solutions to the swelling budget shortfall, some Democrats are proposing unorthodox ways to generate cash.
Strip clubs, six-packs, grocery bags and iTunes downloads are all in their sights as alternatives to broad income or sales tax hikes. So are gas guzzlers and yachts -- and a tax loophole for criminals.
Despite tough odds of overcoming an oath signed by their Republican colleagues to stop any tax hikes, Democratic lawmakers seem confident that their ideas will carry the day. They predict the public won't stand for painful cuts to schools and healthcare to close a shortfall the governor now pegs as high as $20 billion, and say anti-tax forces will ultimately have to accept that more revenue is needed to bring the state into the black.
This is nothing new. We are roughly in the same place we were a few months ago, only the deficit is even larger. Flip it.
The Democrats want to find legal (not illegal) ways to close the budget deficit. The Yacht Party has their arms linked red rover style, daring the Dems to break through. Governor Schwarzenegger is more of a mystery, though he does have to show his cards next week, with the announcement of the May revise, the updated version of his budget proposal.
Next Tuesday, Karen Bass will be sworn in as the new Speaker of the Assembly. Insert your favorite sports metaphor here about what she is stepping into on her first week on the job....
It is our job to hammer the Republicans as much as possible for their ridiculous tax policy positions. It's not as if the yacht tax loophole is the only common sense loophole to close.
Assembly Speaker Fabian Nuñez (D-Los Angeles) has expressed bewilderment that GOP lawmakers won't even talk about eliminating the mortgage deduction for vacation homes valued at more than $1 million -- a move Republicans say would discourage the wealthy from buying property in California.
Public opinion is a real wild-card that will help swing this debate and early polling is giving the Democrats confidence in how they are proceeding thus far. While the legislators are mostly protected by safe seats, the public's opinion on how to solve the budget will play an important role. The media spotlight is going to be pretty glaring as Sacramento heads towards triple digit temperatures inside and outside of the capitol. That combined with upset constituents is what the Democrats are counting on to break the Republican's chain.
It's going to be one hot, controversial summer and not just because there are strippers and porn stars roaming the halls of the capitol.
