Billmon writes about Arnold Schwarzenegger's first initative for how to balance the budget--his "Tax the Texans!" plan. The idea is to get the federal government to collect tax money from citizens of other states and give them to California:
Whiskey Bar: Uncle Sugar: Having promised the voters of California he can plug an $8 billion hole in the state's budget, repeal the hated car tax increase and boost education spending, without raising any other taxes, Governor-elect Schwarzenegger apparently has figured out where the needed miracle is going to come from: the federal Treasury.
"I will make sure that I can meet with President Bush as quickly as possible, because I have a whole bunch of business, California business, to talk to him about and take care of," Schwarzenegger said during a short news conference at the Century Plaza Hotel. "There's a lot of money we can get from the federal government."
The Bush White House is not pleased to hear this:
Posted by DeLong at October 9, 2003 07:44 PM | TrackBackWashington Wire: The White House gives a thumbs-down to Schwarzenegger's talk of more federal aid. "We've already spent $20 billion in cold, hard cash" to bail out states, says a spokesman.
Hey, I don't live in CA. So I don't get hit with the fallout. But Hey, we are very very happy that the largest state in the union is putting pressure on the administration to finallly adopt a sound fiscal policy that gives money to the States. Maybe after having a Gray Davis moment (onstage w/ Bush getting no help with Enron attacks) the Terminator will seek to terminate Bush in 2004. Dream on!!!
Posted by: bakho on October 9, 2003 10:05 PMI do live in California--I was born here in 1968--and I do indeed love my state. But I am profoundly relieved to hear this. It would have been curious to see the federal government awarding our state $30 billion or so just because we elected a GOP governor. I mean, the president can't do that, can he?
Not to sound like an idiot, but can he?
Is Mr. Schwarzenegger really an adult?
Posted by: James R MacLean on October 9, 2003 10:28 PMYes, the Congress and the President could vote to give $30 billion in federal payments to a state with a population of more than 30 million people and a long seacoast on the Pacific Ocean.
How House Majority Leader Delay would then explain this to the voters of Texas, how Senate Majority Leader Frist would then explain this to the voters of Tennessee--these would be very fun to watch.
Watch the Republican political establishment in Washington and in every other state flee this proposal of our governor-elect like bats out of hell...
Posted by: Brad DeLong on October 9, 2003 10:52 PMThe Democrats should hold Arnold's feet to the fire on this pledge. For three years now, and following in the footsteps of his father, current President Bush has thumbed his nose at California. All that money those Texans stole gaming our electricity market would go a long way toward mending this state's finances. Will Arnold speak for California to Bush or speak as a Republican to Bush? Will Arnold press the case that Enron rigged FERC, which turned a blind eye to the plight of California for the benefit of Texas cronies, or will be roll over. Will he make the case that more homeland security money come to California rather than Wyoming? Finally, can be persuade the Congressional Republicans from California that if the California caucus (Dems and Reps) hold together, then the South and Midwest get nothing until Califorina is taken care of first. The Republicans are fond of justifying tax cuts with the phrase: it's our money in the first place, we just want to give it back. Well, California I keep reading pays more to the federal coffers than it gets back. We want our money back. It's our money, afterall. Take it back from Florida, Texas, Georgia, South Carolina, Nebraska and Kentucky, etc. It won't happen. Further, if the Democrats roll over like they did to Bush, then good night sister, I'm moving to Canada.
Posted by: Cal on October 9, 2003 10:58 PMI'm actually surprised; I was half-expecting Bush to aim a fountain of money at Schwartznegger to try to rebuild the Republican party there. Guess they're too worried about the federal deficit.
Posted by: Jason McCullough on October 10, 2003 12:32 AMIt would get defeated in the Senate 98-2
Posted by: jam on October 10, 2003 04:17 AMArnold is in the same situation that Pataki (sp?) is in, in NY state. The state is very likely to go Democratic in the presidential race, so Bush has little motivation to help them. The senate seats are all Democratic, so they have little leverage there. The only thing keeping the administration from declaring actual war on those states is the prospect of losing the GOP representatives :)
Instead of beating up on Iraq to the tune of $200 billion, I guess we could have used some of the money at the state level.
On the other hand, I am quite sure that there are sizable cuts that can be made in the CA government. The question is whether they're significant enough to alter the structural deficit there.
Posted by: Ross Judson on October 10, 2003 08:26 AMApparently the neocons haven't given up on their strategies: they've just cannily applied them in Cali.
1) Pick a hostile locale where you really need some friends (Iraq/Cali)
2) Make sure the local strongman of said locale is someone not even all Democrats have the stomach to defend (Saddam/Davis)
3) Blame local strongman for problem not of his making (Al-Quaeda/Enron-Dynegy)
4) While Democrats mill about like sheep, take swift action to create "facts on the ground" (Move troops to Gulf/Get fatcat to finance petition)
5) Keep cost of operation and aftermath vague(Avoid Congress/Avoid Press)
6) Wait for Left to attack each other (Hitchens/Bustamante)
7) After operation is complete, ask American Taxpayer for bailout.
If the Repubs were smart, they would give Arnie all the money he needed, so he could take the credit for "saving" California, and possibly turn CA into a state where a Republican has a chance at winning electoral votes.
Fortunately, Republicans aren't smart.
Posted by: rps on October 10, 2003 10:14 PMPeople, including those who work for state governments, don't magically become fiscally sober when they receive "free" money. In fact, it's highly likely that the opposite will occur. California needs to get its spending under control. Something akin to the Grace Commission would be in order.
Posted by: Alan K. Henderson on October 11, 2003 12:26 AM