Seems that Governor Schwarzenegger wants to help out his old Hollywood friends with millions of dollars in tax breaks. He makes a case that lower taxes on film and television companies will reverse the trend of runaway production. Currently, California is losing out to at least 40 other states and Canada that are luring away production companies with very attractive tax incentives.

Five years ago, 66% of feature film production took place in California. Last year this was reduced to just 31% and the governor wants to help an industry that supports about 250,000 employees.  Read more >>

It is no surprise that fiscal conservatives in California are
appalled at the breathtaking assault on taxpayers proposed by
Governor Arnold Schwarzenegger. Both activists and elected leaders
-- usually Republicans -- have responded with either derision or
laughter (with perhaps some expletives mixed in).

Given that the Governor could find not a single legislator from
either party to carry his last budget, it is safe to assume his
latest proposed mix of cuts and revenue enhancements will receive
similar treatment at the Capitol.  Read more >>

The day before Halloween, Governor Schwarzenegger announced the formation of a bipartisan Commission on the 21st Century Economy to re-examine and modernize California's out-of-date revenue gathering laws that contribute to the boom and bust state budget cycles.  Read more >>

The California Taxpayers Association (CalTax), after weeks of heavy pressure from Governor Arnold Schwarzenegger, agreed to support his "compromise" budget plan which includes a $10 billion tax increase. Apparently, CalTax thinks Californians don't pay enough taxes.  Read more >>

Last week saw several significant clashes in the budget war between those who have vowed not to raise taxes and those who would raise taxes in a heartbeat. Both sides lost some and won some but, on balance, the taxpayer defenders came out better and stronger.  Read more >>