11.21.2008

Car Tax Hike

I could be wrong, but isn't an increase in the car tax the thing that got Gray Davis recalled?
SACRAMENTO --State lawmakers began moving toward a deal this week to close California's deficit with the help of steeper car fees that would cost many drivers hundreds of dollars annually, according to people involved in budget talks.

Under the plan, GOP lawmakers -- most of whom have signed anti-tax pledges -- would vote to triple the vehicle license fee that owners pay when they register their cars every year in exchange for a ballot measure that would impose rigid limits on future state spending. Motorists' annual license fees would rise from 0.65% of the value of their vehicles to 2%. For a car or truck valued at $25,000, the increase would be $336.


Indeed:
The last governor to triple the license fee was his predecessor, Gray Davis. Voter anger soared, and the increase played a large role in Davis' removal from office. Schwarzenegger crusaded against the hike throughout the recall campaign, and in his first act in office he cut the fee -- the "car tax," as he and some others call it -- back to its current rate.

1 comment:

  1. Great! So, Californians - already with the hightest rate of foreclosures in the nation - can now choose between keeping their car or a garage to park it in. Boy, am I glad I'm still driving my old clunker.

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