Wednesday, November 02, 2005

Schwarzenegger prevents California from collecting taxes

At the same time that Governor Schwarzenegger is asking voters to support Proposition 76 (a measure intended to restrain government spending; I've written about it before), the LA Times reports that Schwarzenegger has vetoed a number of bills that would have helped the state collect billions of dollars in unpaid taxes.
"The governor blocked efforts to increase penalties on retailers who filch the sales taxes they collect, and on companies that don't collect taxes when they should. A proposal to help authorities garnish wages of convicted tax evaders for as long as their debt is unpaid also was vetoed.

"State tax officials said another of the governor's vetoes could allow some people snagged by the Internal Revenue Service for dodging taxes to avoid coughing up California's share, costing the state tens of millions of dollars.
The state Franchise Tax Board has already reported that as a result of one of the vetoed bills (that would have required taxpayers to pay the state when the IRS forced them to pay the federal government) "the state would be unable to collect $30 million from known tax cheats."

So the governor doesn't want to raise taxes, and wants to limit government spending because we have a large deficit, but doesn't want to collect taxes legitimately owed to the state?

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