Calif. prediction: Higher taxes, more spending

Tuesday, November 13, 2012
Becky Yeh - California correspondent (

A California publisher asserts that Democrats now have the ability to pass any tax hike on the state's citizens on top of the tax initiative that voters recently approved.

californiaAs a result of last week's election, California Democrats now hold a supermajority status in the state legislature. Of the 120 legislators that make up that body (40 in the State Senate and 80 in the State Assembly), Democrats now hold 82 seats (26 and 56, respectively) -- giving them the two-thirds majority needed to pass tax hikes that Republican lawmakers have sought to block for years. Along with the passage of Governor Jerry Brown's tax initiative on Tuesday, tax rates in the state are expected to spike.

James Lacy is the publisher of the California Political Review and board member of American Conservative Union.

"First of all, we just had a terrible tax raise on Proposition 30," he tells OneNewsNow. "What Californians and the media may not realize is that that proposition has a retroactive effect that goes back and will raise taxes on business activity that has already occurred from roughly 10 percent to up to 13 percent. Well, that's a 30-percent hit."

With the state's budget woes and revenues that must materialize in order to pay off debt, Lacy predicts Democrats will continue to take funds from taxpayers.

"When you add to that, they're going to raise taxes further. They're not going to cut spending," he predicts. "The problem that we have in California and in the nation is a spending problem."

Gov. Brown asked his fellow Democratic lawmakers to be frugal and to rein in spending.

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