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Obama backs off tax increases; Schwarzenegger mulls tripling car taxes, raising pet taxes, and more

By Michelle Malkin  •  November 23, 2008 11:05 PM

Welcome to the funhouse mirror world of Rebranding 2008.

Team Obama reportedly is backing away (for now) from its signature campaign pledge to roll back the Bush tax-cuts on wealthy Americans…

President-elect Barack Obama may consider delaying a campaign promise - to roll back tax cuts on high-income Americans - as part of his economic recovery strategy, two aides said on Sunday.

David Axelrod, the Obama campaign strategist who was chosen to be a senior White House adviser, was asked if the tax cuts could be allowed to expire on schedule after tax year 2010 rather than being rolled back by legislation earlier. “Those considerations will be made,” he said on “Fox News Sunday.”

Bill Daley, an adviser to Obama and commerce secretary under former President Bill Clinton, said on NBC’s “Meet the Press” that the 2010 scenario “looks more likely than not.”

President George W. Bush’s tax cuts are set to expire at the end of 2010. After that they would revert to 2001 levels, when the top individual tax rate was 39.6 percent.

Obama has called for reducing taxes for the middle class, but requiring the wealthiest Americans to pay more than the current top rate of 35 percent.

His aides’ comments suggest Obama may be wary of imposing any additional tax burden at a time of deep crisis, despite the outlook for record budget deficits and mounting national debt. He may also be seeking to bolster Republican support for his recovery measures.

Meanwhile, GOP Gov. Arnold “Rebrand the GOP” Schwarzenegger is mulling possible hikes in California’s vehicle license fees – the very idea that got Democrat Gov. Gray Davis kicked out of office. Brilliant (hat tip - Patterico):

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.

The higher fees would generate $6 billion annually, helping to fill a budget gap that is projected to reach nearly $28 billion over the next year and a half.

The proposal is being championed by incoming state Senate leader Darrell Steinberg (D-Sacramento). Democrats and advocates for the poor have opposed strict state spending limits, saying they would cripple government services.

…In a meeting with Times reporters and editors last week, the governor said he would not rule out raising the car tax.

“Everything is always on the table,” Schwarzenegger said when asked about the prospects for a sharp increase in vehicle license fees. “If I hate something, you can bring it up and you can show to me why that is a good idea, and maybe you know with the new circumstances, there is a good idea that I maybe looked at it in the past and didn’t think it was a good idea. This is a crisis situation and one has . . . to look at it in a fresh new way.”

More “fresh” taxes on the table:

Potentially just days from now, Governor Arnold Schwarzenegger will be moving to tax veterinary services for your pets.

According to the Governor’s website, his new budget proposal would mean “[e]ffective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services. Effective March 1, 2009, the sales and use tax rate will be applied to amusement parks and sporting events.”

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Comments

  1. #1
    On November 23rd, 2008 at 11:14 pm, AlohaGuy said:

    Yes, higher fees - there’s a way to get people to buy more cars in a lousy economy. Moron.
    Note to Ahhhnold - Hillary is stepping down, please go to NY and be a Dem Senator, and give California a chance.

  2. #2
    On November 23rd, 2008 at 11:16 pm, AlohaGuy said:

    President-elect Barack Obama may consider delaying a campaign promise - to roll back tax cuts on high-income Americans - as part of his economic recovery strategy

    And the reason this isn’t always a good strategy is…..???

  3. #3
    On November 23rd, 2008 at 11:20 pm, englishqueen01 said:

    And the reason this isn’t always a good strategy is…..???

    Because the wealthy are all, like, evil and stuff…didn’t they teach you that in socialism indoctrination camp school, AlohaGuy?

    First - I’m glad Obama is talking this way, if even for the moment. It plants a seed.

    Second - I’m sure this is driving the netroots and commies absolutely batty, so 2 points for Obama.

    Third - Schwarzenegger is a RINO. PERIOD. Canoodling with Kennedys will do that to a guy, apparently. How about California - and all other cash-strapped states with bloated governments (hell, Jim Doyle & Wisconsin!) cut budgets. You know, not a spending freeze. ACTUAL cuts. Tighten belts and you can see that people will respect you for it. Especially the tax payers.

  4. #4
    On November 23rd, 2008 at 11:51 pm, DerKrieger said:

    California is a case study in Liberal government. Can the GOP pleeeeaaasssee make this case?

  5. #5
    On November 23rd, 2008 at 11:51 pm, California Red said:

    Arnold is hamstrung because the CA voters keep electing tax and spend Democrats. Sacramento Politicians simply won’t cut spending so I guess they will now tax the crap out of everything they can think of.

  6. #6
    On November 23rd, 2008 at 11:53 pm, fmfnavydoc said:

    These elected officials are out of control…they think that they’re “white knights” that should come to the rescue of any business or person that mismanaged themselves into financial trouble. And they’ll do it…at our expense!

  7. #7
    On November 23rd, 2008 at 11:55 pm, ITookTheRedPill said:

    President-elect Barack Obama

    He’s not President-elect (the Electoral College hasn’t voted for President yet), and he’s Constitutionally ineligible to be President of the United States.

    This candidate, who bore witness that thre is no deity except Allah and Muhammad is the Messenger of Allah, who claims to be a Christian but has never confessed “Jesus is Lord”, who wrote of his Hope to bring Assault from Jakarta to the White House and how “my journey is part of a larger journey - one shared by all who’ve ever sought to apply the values of their faith to … bring an Empire to its knees“, had a father who was a British citizen.

    British law conferred British citizenship to the son.

    That means the candidate known as Barack Hussein Obama II (also known as Indonesian citizen Barry Soetoro when he was presumably adopted by his step-father Lolo Soetoro), was, at his birth,

    NOT a Natural born citizen of the United States,

    but rather a

    Natural-born subject of the crown of England.

  8. #8
    On November 23rd, 2008 at 11:59 pm, kardinal said:

    Yet another reason to jump this sinking ship. I think that’s reason #568 if I recall.

  9. #9
    On November 24th, 2008 at 12:04 am, Republicanvet said:

    President-elect Barack Obama may consider delaying a campaign promise - to roll back tax cuts on high-income Americans - as part of his economic recovery strategy, two aides said on Sunday.

    Soooooo. Not that I mind taxes being lower, but…
    The media bleated continuously that Urkel had a superior plan for the ailing economy, yet he hasn’t even been inaugurated yet and he’s already changing his plan?

    Perhaps if he had more experience, his prior planning would be preventing his p!$$ poor performance.

  10. #10
    On November 24th, 2008 at 12:04 am, FilmLadd said:

    Thank god I am on hyrdrocodone pain pills at the moment.

    Someone terminate the term-ee-nay-dor.

  11. #11
    On November 24th, 2008 at 12:11 am, rblakeh said:

    “…This is a crisis situation and one has . . . to look at it in a fresh new way.”

    That’s the Politics of Fear at its finest my friends.

  12. #12
    On November 24th, 2008 at 12:11 am, rightisright said:

    I would really like to know if these spendthrift politicians run their family budgets the same way…if they do, we should be seeing them asking for bailouts shortly.

    Me thinks Ahhnold has read his own press clippings…maybe he will be ingratiated by the”Clan” if he keeps pushing Cailf. into bankruptcy…what an idiot. Been here 40 + years and still talks like he’s in da Fatherland

  13. #13
    On November 24th, 2008 at 12:12 am, rightisright said:

    make that Faderland

  14. #14
    On November 24th, 2008 at 12:17 am, rightisright said:

    On November 23rd, 2008 at 11:55 pm, ITookTheRedPill said:

    You may very well be right, now tell me whose DOJ is going to pursue this? Certainly not Bushes, for damn sure the da Leader’s…buy ammo and stock up.

    I will never submit, NEVER!

  15. #15
    On November 24th, 2008 at 12:21 am, ITookTheRedPill said:

    British Nationality Act of 1948 (Part II, Section 5):

    Subject to the provisions of this section, a person born after the commencement of this Act shall be a citizen of the United Kingdom and Colonies by descent if his father is a citizen of the United Kingdom and Colonies at the time of the birth.

  16. #16
    On November 24th, 2008 at 12:25 am, ITookTheRedPill said:

    On November 24th, 2008 at 12:17 am, rightisright said:

    You may very well be right, now tell me whose DOJ is going to pursue this?

    A lawsuit about exactly this issue has been DISTRIBUTED for Conference by the Supreme Court of the United States. The justices will discuss it on December 5, 2008.

  17. #17
    On November 24th, 2008 at 12:25 am, ITookTheRedPill said:
  18. #18
    On November 24th, 2008 at 12:31 am, Cal City Conservative said:

    Heard about this the other day. If there is any silver lining it appears that it’s not going to pass. I understand he was wanting to raise it by 12 bucks which is peanuts but an increase none the less. My least expensive vehicle to register last year was my 92 Mazda Miata and it was 80 bucks. Yep I’d love to pay 240!! Not. Why does the water seem to keep getting warmer?

    I am more than tired of the Dems that run this state thinking the only way to do things is tax, tax, tax.

    As much as it sucks I’m going to hang in for now. As the saying goes experimentation starts in Cali and the disease then spreads across the US.

  19. #19
    On November 24th, 2008 at 12:33 am, Kevin K. said:

    ITookTheRedPill said: (#7)

    That means the candidate known as Barack Hussein Obama II (also known as Indonesian citizen Barry Soetoro when he was presumably adopted by his step-father Lolo Soetoro), was, at his birth,

    NOT a Natural born citizen of the United States,

    but rather a

    Natural-born subject of the crown of England.

    You forgot his mother was a US Citizen, therefore he is too. And if he was born in Hawaii, as the preponderance of evidence and allegation indicate, he is therefore a US citizen by that reason as well. If he were adopted by his Indonesian step-father and thereby lost his US citizenship, that is another issue.

    I don’t like any of his policies, and am dreading the next four years, but let’s be accurate and fair.

  20. #20
    On November 24th, 2008 at 12:38 am, ITookTheRedPill said:

    Kevin K.,

    If he was born in Kenya (as his paternal grandmother says he was), then his mother was too young to confer U.S. citizenship upon him. She was 18, and by the law at that time she would have had to have been 19.

    Even if he was born in Hawaii, as a dual citizen, the British Citizenship disqualifies him from “Natural Born U.S. Citizen” status.

  21. #21
    On November 24th, 2008 at 12:57 am, BlameAmericaLast said:

    Here’s a novel idea for CA. Get rid of the 11 million illegals here and we’d be back in the black in no time.

  22. #22
    On November 24th, 2008 at 1:27 am, love2rumba said:

    Ahhnold “We are the future of the GOP” Schwarzenaager is a buffoon pure and simple…Arnie baby…please leave the governor’s mansion and make a few movies before you really f___ up evrything.

  23. #23
    On November 24th, 2008 at 1:29 am, ironman said:

    Remember the movie ‘Creepshow’….Mr. Pratt(U.S.taxpayer)infested with cockroaches(tax&spend politicians,bailout recipients)?

    I wonder if Arnold will decree state mandated Tax-O-Meters to be installed on citizens’ toilets…to flush your net worth by.

  24. #24
    On November 24th, 2008 at 1:30 am, ironman said:

    *or bye*!!

  25. #25
    On November 24th, 2008 at 1:30 am, love2rumba said:

    Three lessons for Republicans here:

    MCCLINTOCK…MCCLINTOCK…MCCLINTOCK

  26. #26
    On November 24th, 2008 at 1:39 am, California Red said:

    I agree with BlameAmericaLast. CA must acknowledge that illegal immigration strains the education, healthcare, and prison systems beyond the limit.

    Add to that the stanglehold that powerful unions have on the state, and you get a recipe for disaster.

    Good thing is, it seems like the nation felt that the Democratic vision is the way of the future. California is what the hope and change liberal policies of the Democratic party will get you.

  27. #27
    On November 24th, 2008 at 1:53 am, madmonkphotog said:

    Question:

    Where is the Hollywood crowd to help out for the common good of the state?

    I mean… they’re always telling us what we should do for others, yet they’ve been dead silent on ponying up more for the common good.

    I don’t hear calls for a tax redistribution incentive on movie tickets, do I?

    Of course not.

  28. #28
    On November 24th, 2008 at 1:54 am, aggiebc said:

    Keep it up Govenator, hopefully your stupid policies will run everyone who’s not a socialist or living off of welfare out of California. I have no problem with your state having fewer electoral votes (which are all but guaranteed to the Democrat candidate every election).

  29. #29
    On November 24th, 2008 at 2:13 am, Freddy said:

    …[e]ffective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services…

    Furniture repair! I have no doubt that is gonna generate the 27 Billion they need to balance that budget!

  30. #30
    On November 24th, 2008 at 2:23 am, jsmiddleton4 said:

    Arnold is hamstrung….

    Baloney. He is suppose to set the agenda.

    We in Arizona while not much liking the additional traffic, we’ll be glad to take folks, business and sell them cars to avoid the California expenses.

  31. #31
    On November 24th, 2008 at 5:19 am, graysonret said:

    Like all worthless, “haven’t got a clue”, “protect the special interest groups” politicians, the only solution they can think of, is to raise taxes. The tree of liberty must be nourished from time to time, with the blood of tyrants. Soon the national government will do the same thing…raise taxes to support their re-election contributors. First step, not raise taxes; just let the tax cuts expire, and “fool” the people.

  32. #32
    On November 24th, 2008 at 7:22 am, TMoney said:

    RINOs are unceasingly amazing.

    Raise taxes to pay off debts, but don’t stop shoveling money in failed welfare programs. Don’t stop dumping truckloads of money into school systems to teach illegal aliens or hospitals to give them free aspirin at $10.00 per tablet.

    Dingleberries.

  33. #33
    On November 24th, 2008 at 7:41 am, docflash said:

    …[e]ffective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services…

    Can they tax a tax?

  34. #34
    On November 24th, 2008 at 8:09 am, sandyb said:

    BlameAmericaLast said:
    Here’s a novel idea for CA. Get rid of the 11 million illegals here and we’d be back in the black in no time.

    That was my first thought, too, Blame. Check out how well off localities and states are that aren’t paying for illegals’ healthcare, schooling and other social services. Wasn’t it Oklahoma that stopped renting apartments to illegals? Notice, the world didn’t come to an end.

    If there’s any upside to this economic mess, I hope it’s that illegals aren’t finding the U.S. the land of opportunity anymore and are hightailing it back to May-hee-co before the weather gets colder.

    OT, if authorities are looking the other way at all the crimes being committed by illegals on the border states, what’s to prevent legal U.S. residents from protecting themselves en mass? If entire towns started enforcing immigration laws (since the feds say they’re whelmed over), what’s law enforcement going to do? Put everyone in jail? When the feds mistakenly let 178 hardcore illegal felons loose (as was the case recently), the time for major citizen self-protection and enforcement has come.

    There’s a war going on in the border states, and I feel for those people who can’t even get a good night’s sleep for worrying for their families’ safety while in their home country!

  35. #35
    On November 24th, 2008 at 8:22 am, zorro said:

    For a car or truck valued at $25,000, the increase would be $336.

    So, those who have to use their vehicles to get back and forth to work get nailed to the wall once again.

    Did they consider that exorbitant taxes would drive (pun intended) the population to migrate to states with lower taxes?

  36. #36
    On November 24th, 2008 at 8:33 am, tre said:

    Arnie should go back to making Terminator movies. He was good at that.

    He is NOT the future of the Republican Party. That strategy has lost us two straight elections.

  37. #37
    On November 24th, 2008 at 8:42 am, MarcoPolo said:

    The media bleated continuously that Urkel had a superior plan for the ailing economy, yet he hasn’t even been inaugurated yet and he’s already changing his plan?

    Obama actually said, before the election, that he wouldn’t roll back the tax cuts if the economy was struggling. Sadly, the media didn’t make anything of it, and neither did McCain.

  38. #38
    On November 24th, 2008 at 8:47 am, FamilyMan said:

    Has anyone ever heard of reducing overhead by a hiring and budget freeze. Four percent of California employees retire every year.
    Never mind. I guess I’m just a stupid conservative.

  39. #39
    On November 24th, 2008 at 9:07 am, sandyb said:

    Urkel. I like that. Wait’ll the Kos Kids hear that one.

  40. #40
    On November 24th, 2008 at 9:24 am, ThatSamIAm said:

    We should track the number of broken promises and failed socialist plans Obama has.

    Socialism/Obama 0
    Taxpayers 1

    Arnold is another story but let’s just state for the record he is a fake republican.

  41. #41
    On November 24th, 2008 at 9:33 am, Paul Revere said:

    I’m surprised California hasn’t figured out that a drive-thru window tax would be great in that it would raise revnues and stop people from eating at fast food places!
    /liberal logic

  42. #42
    On November 24th, 2008 at 10:19 am, Danceswithdachshunds said:

    Ok, now I’m convinced! Schwarzenegger just watched the movie Popeye and realized there’s a whole world of untapped possibilities just waiting out there.

    Popeye: It ain’t no sea craft, it’s me dinghy and it’s under the wharf.
    The Tax Man: Ah ha. ahh-ha. This your goods?
    Popeye: They is.
    The Tax Man: Yeah. You’re new in town right?
    Popeye: If you call this a town, yes.
    The Tax Man: Well, first of all, there’s 17¢ new-in-town tax, and there’s 45¢ rowboat-under-the-wharf tax, and one dollar leaving-your-junk-lying-around-the-wharf tax, so all together, you owe the Commodore $1.87.
    Popeye: Uh, who’s this Commodore?
    The Tax Man: Is that the nature of question? There’s a nickel question tax.

    Arnold, may I suggest a “Being an illegal alien tax”?

    Tea - meet harbor.

  43. #43
    On November 24th, 2008 at 10:26 am, rocketman said:

    The “Gubernator” certainly changed over the last few years. He used to be a much more conservative person–and seems to be a bright and talented guy.

    I guess this just shows what living with a wife with Kennedy family ties will to to your brain! He acts like ex Governor Grey Davis now. However, the people still remaining in California get what they deserve / elected. The smart people and companies are bailing out fast.

    John Bibb

  44. #44
    On November 24th, 2008 at 10:30 am, rocketman said:

    Danceswithdachshunds (#42) post above is great–I remember the Popeye movie and always thought it was quite appropriate to the liberal tax and spend mentality.

    John Bibb

  45. #45
    On November 24th, 2008 at 10:42 am, cheapseat said:

    isn’t it absolutely amazing that these governments, state, local and federal, NEVER THINK OF CUTTING SPENDING AND CLOSING OUTDATED OR FAILED PROGRAMS. reminds me of the government worker joke about the dept of agriculture “worker” crying at his desk, and his colleaques remarking that he might lose his job because his farmer had died. last month, huge job loses, but 17% job growth in government. it takes way more people to screw up an economy this size.

  46. #46
    On November 24th, 2008 at 10:49 am, mojack420 said:

    any one want to guess just how much of the budget deficit is directly caused by the open boarder pro illegal alien lobby .

  47. #47
    On November 24th, 2008 at 10:55 am, right_on said:

    The State of California would make up it’s budget shortfall in short order by doing just two things. First, stop paying for undocumented alien healthcare, schooling, food stamps and welfare, and second, STOP SPENDING “NEW” MONEY.

    Neither of these things will ever happen, and the result is that California taxpayers will be forced to endure a homosexual assault by it’s own legislature, all without the use of KY jelly.

    California residents should consider relocating the state capitol from Sacramento, to San Francisco…their proposed solutions to fiscal problems always seems to suggest that the taxpayers bend over…not just backwards.

  48. #48
    On November 24th, 2008 at 12:09 pm, md1964 said:

    Funny how the big Liberal bastions such as Chicago, Detroit, New York and the populated areas of Californis love to dump on Middle America…..but if it weren’t for the tax payers in middle America subsidizing their dysfunctional economy…they would fall apart. I say to hell with them.

  49. #49
    On November 24th, 2008 at 12:25 pm, AlohaGuy said:

    The photo reminds me, if Obama is so smart, how come he smokes?

  50. #50
    On November 24th, 2008 at 12:25 pm, greenfairie said:

    Gee, just when I was thinking of buying a new car. I’m sure the auto dealers are thrilled too.

    I have a suggestion to fix CA’s woes: a hydrogen bomb on Sacramento. It’s the fault of both the governor and the idiotic legislature (not to mention the employee unions) that spending is out of control.

    Another suggestion: if you must increase taxes, I suggest we jack up taxes on abortions, on sanctuary cities, on companies that employ illegal aliens, on those “pot clinics,” on items gifted to Hollywood celebrities, and on anyone who brags about being “green” or “eco-friendly.” That way we can get the libs on board for a tax revolt.

  51. #51
    On November 24th, 2008 at 2:57 pm, mike.musculus said:

    #33
    On November 24th, 2008 at 7:41 am, docflash said:
    . . .
    Can they tax a tax?

    Well yes, … but they usually elevate it to the peerage first. It then becomes a Sir Tax.

  52. #52
    On November 24th, 2008 at 3:44 pm, JohnS said:

    How do we begin to recall Mr. “Total Recall”? We did it to Gray Davis after he proposed tripling the DMV registration fee and giving licenses to illegals. I will never vote for this fool again! I won’t vote Democrat, but I will not vote for Arnold!

    How about spending less money and getting rid of wasteful programs, just like we do with our families each and everyday!!

  53. #53
    On November 24th, 2008 at 4:58 pm, RabbidSquirrel said:

    On November 24th, 2008 at 3:44 pm, JohnS said:

    How do we begin to recall Mr. “Total Recall”?

    At the time of the Davis recall, Davis was dirty and was doing things for his own interest and against the will of the people. Hmm, where have I heard that before? He was so engrained in the Cali political infrastructure, the only way to dislodge him was to have a big name ticket like Arnold who was ‘outside the beltway’. And it was sketchy then.

    I guess there is no beltway in Sacremento but I digress…

    I dont know, be careful what you ask for. You may end up with that LaRaza dude or something on the order of Boxer/Feinstein.

  54. #54
    On November 30th, 2008 at 1:05 pm, Lee Hazel said:

    Incidently, since when has “conflict of interest” meant squat to a Democrat?

    eg Barny Frank and his “boyfriend” at the very senior levels of Freddie Mac?

    Chuck Schumer insuring the demise of IndyMac by “leaking” a letter outlining its potential failure?

    The naming of the Chairman of the NYFed to head up the Obama financial “bailout” committee. One of the “inner circle” of banks leading the NYFed just happens to be CitiBank?

    Imagine That hmmmmmmmmmmmm?

    PC is Thought Control
    LEE

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