California Gov. Arnold Schwarzenegger has a $16 billion budget deficit dilemma on his hands. He insists he doesn't want to cut education. But he proclaims with equal fervor that he won't raise taxes.
So what's a post-partisan governor to do? Close tax loopholes, of course.
Now one governor's loophole may be another politician's tax increase.But according to two media outlets, Schwarzenegger told the audience at a Pleasant Hill, Calif., budget forum last Wednesday that the state should consider closing tax loop-holes and in his mind that includes the lack of a sales tax on professional services -- including legal services.
"We have to look at the way we are taxing," Schwarzenegger is reported as saying. "There's whole new economies that are developing,service-oriented economies."
Asked about the comments on Thursday, finance department spokesman H.D.Palmer said the governor was just explaining that there are a lot of deficit-eliminating ideas "out there."
"Basically, it was in the context of we ought to have everything on the table as we ought to be having discussions about them sooner rather than later," Palmer said. "But we're not carrying a bill in our back pocket, if that's what you're asking."
