California Faces Battle Over Budget

A budgetary showdown is looming in California over taxes 2010 as a constitutional deadline approaches. California which is the eighth largest economy in the world, faces running out of money if no budget is approved by the first of July. This would force California to issue IOUs as was done in 2009. The California constitution requires any tax increase to be approved by two thirds of the legislators. At the present time the Democrats need four more votes to pass the budget but the Republicans are vowing they will block its passage.

Top ranked Republican Jim Neilsen of the Assembly Budget Committee says there is nothing in the framework of the current budget that deserves his support.

Brown who is now 73, took over the position of governor of California in January of this year. He had pledged to repair fiscal problems in California that give it the worst credit rating of all the states according to Standar & Poor’s. At the beginning of the year California had a deficit of $26 billion. Recent government spending cuts and increased revenue have lowered the gap to $10 billion.

The plan for taxes 2010 that Brown is proposing includes keeping a one percent boost in retail sales tax to 8 and a quarter percent. There is also a proposal to raise the fee to register a car to 1.15 percent of the value of the vehicle. The plan extends the reduction of the annual child tax credit to $99 from the previous amount of $309.

CEO Of GM Calls For A $1 Hike In Gas Taxes To Spur Small-car Sales

Dan Akerson, the CEO of GM is proposing a government-imposed tax hike of $1 in gas price. He hopes that the rising cost of gas plus the proposed tax hike of one dollar will make buyers for choosing smaller cars that consume less gasoline. Akerson wants people to pay as much as an increment of one dollar for every gallon pumped.

The Detroit News featured Akerson’s proposal where he also made it clear that he expects the government to pass on the leadership of GM to the company itself. He hopes for this to take place in a period of … Read the rest

Dan Akerson, the CEO of GM is proposing a government-imposed tax hike of $1 in gas price. He hopes that the rising cost of gas plus the proposed tax hike of one dollar will make buyers for choosing smaller cars that consume less gasoline. Akerson wants people to pay as much as an increment of one dollar for every gallon pumped.

The Detroit News featured Akerson’s proposal where he also made it clear that he expects the government to pass on the leadership of GM to the company itself. He hopes for this to take place in a period of 12 months after his proposal. The federal government took control of GM after the car maker was close to being bankrupt.  This might have increased the taxes 2010.

According to Akerson, if the gas prices are high, people will get more fuel efficient models and this will not only help people save money, but it will also help the environment. This will form part of a government comprehensive energy policy where less energy is used in order to stop pollution.

Akerson believes that this will force car makers to produce more fuel efficient cars that will have a higher mileage per gallon. Most car manufacturers have not come up with cars who are fuel efficient. However, if there is a demand for fuel-efficient cars then manufacturers will make more fuel efficient models.

Akerson wants to control how much gas is being used by hiking up the prices. He says that even when gas prices drop a 50 cent tax per gallon should be enacted in order to make consumers buy and use less gas. He also wants to hike up the price of energy efficient cars.