(December 19, 2008) Only hours after being sent a package of tax increase bills authored by Democrats, Governor Arnold Schwarzenegger held a news conference yesterday to announce that he would veto them. The Governor indicated that the package did not include economic stimulus provisions that were needed including relaxed state workplace and environmental laws to expedite public works projects. He also indicated his displeasure with raising taxes on working families during an economic downturn. 

CalChamber President and CEO Allan Zaremberg responded to yesterday’s developments saying, “I strongly applaud Governor Schwarzenegger’s leadership in rejecting the bills sent to him today. The Governor understands the importance of protecting jobs and removing barriers for economic recovery.”   

“CalChamber remains strongly opposed to any tax increases that single out specific industries. The oil severance tax that was proposed would have resulted in a $1 billion tax increase on a small segment of California’s economy, making California oil more expensive than imported oil and killing good jobs. The voters rejected a similar measure, Proposition 87, in 2006.”    

“CalChamber also opposes the Democrats’ attempt to subvert Proposition 13 by increasing taxes with a simple majority vote. California voters have already spoken on this issue when they rejected Proposition 56 in 2004. Proposition 56 would have eliminated the two-thirds vote requirement for tax increases.”