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SACRAMENTO — When asked last week about what kind of fi ght he expected from Democrats over their proposed tax increases, Gov. Arnold Schwarzenegger smiled and said with a slight wink and nod, “ Well, what is being said and what is being done, as you know, are sometimes two different things.”
Schwarzenegger was suggesting that Democrats were posturing on their $ 2.1 billion in tax proposals, putting on what he calls Kabuki theater for their constituents before he expected them to relent to the reality that Republicans will never agree to taxes as part of the solutions lawmakers must fi nd to close the $ 24.3 billion deficit.
Democrats are seeking $ 830 million in a new oil severance tax, $ 1 billion in tobacco taxes, $ 76 million in fi re fees, $ 125 million in vehicle license fee increases for state park passes and $ 80 million in corporate loopholes.
Without four Republican votes in the Assembly and two in the Senate — or the governor’s signature — their only option may be to put on a show while setting their sights on the fi ght to keep program cuts to a minimum.
“ The oil tax and tobacco tax poll good, we can show our constituents we put up a fi ght and go from there,” said one Democrat who asked not to be identified.
Democrats have pared down Schwarzenegger’s proposed cuts — from $ 16 billion to about $ 11.4 billion — while proposing an additional $ 9.7 billion in solutions that essentially mirrored Schwarzenegger’s, such as accelerating withholdings on personal and corporate income and on independent contractors.
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