George S. May Business Blog

Breaking news: California may be looking toward major tax increases across the board

If you thought it was already too expensive to live in California, brace yourself, it could get a lot worse very soon.

Sources say that in an attempt to battle a $42 billion deficit, the California Governor, Arnold Schwarzenegger, and legislative leaders have reached a tentative budget deal. There will be a vote on Friday. Response from the Governor’s office says that there are still a “few key issues” that are still being worked out. They admitted there has been progress, but remained that there is no deal yet. The deal is expected to include tax hikes in sales taxes, gasoline taxes, income taxes, car taxes, and pretty much anything else that is currently taxable. The Governor’s office also said that if there is no deal worked out Friday, we can expect major (up to 20,000) job cuts in state employment.

Which method do you believe, if any, will be best for chipping away at California’s huge deficit?

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