(May 14, 2004) No tax increases were included in the revised budget released yesterday by Governor Schwarzenegger.

The Governor has kept the promise he made to employers and all Californians at the California Chamber’s annual Legislative Business Summit on May 4 when he said, “We will make the cuts and we will not increase the taxes, that is for sure.”

Governor Schwarzenegger was able to produce a proposed balanced budget by making necessary cuts with no increase to taxes, a step that will help keep California on the road to economic recovery.

“Tax increases are a drain on the economy,” said Chamber President Allan Zaremberg. “This proposed budget will not only help to improve the business climate in California, it will also help to build a better economy.”

The Chamber believes that the proposed budget is good for business and economic growth.

'We are encouraged that Governor Schwarzenegger has added $380 million in transportation funding,' continued Zaremberg.  'Investment in California’s infrastructure is essential to keeping California economy on the road to recovery.'

For more information about business issues please visit the Government Relations section of our website at www.calchamber.com.