New California Budget Passed, then Vetoed

by

On Wednesday, the California Legislature passed the 2011/2012 budget with some spending cuts, and a few tax changes.  The budget retained many of the recent manipulations and smoke and mirrors that have become a standard tool for the lawmakers to avoid actually dealing with the obvious budget problems  they are facing. 

The tax-related provisions included:

  • 0.25% sales tax increase (to fund local districts);
  • $12 increase in the DMV fee; and
  • Requirement that online sellers in California collect sales and use tax on items sold over the Internet. Most notably this will impact sales on Amazon, Overstock.com, and eBay.

The very next day, the Governor vetoed the budget stating "Unfortunately, the budget I have received is not a balanced solution. It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings."

Well, at least the legislature met their requirement to send a budget to the Governor or face not getting paid.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: