Bee Capitol Bureau - Schwarzenegger Draws Clear 0line in Race with Angelides
Bee Capitol Bureau - Schwarzenegger Draws Clear 0line in Race with Angelides
July 7, 2006
By Kevin Yamamura -- Bee Capitol Bureau
Gov. Arnold Schwarzenegger declared Thursday he will not raise taxes if re-elected as governor, establishing a fundamental contrast in his November race against Democrat Phil Angelides, who wants to boost taxes on the state's highest earners and corporations to balance the budget.
In an hourlong interview with The Bee editorial board, Schwarzenegger did not promise to balance the budget but said he would "chip away" at the state's structural spending gap by controlling costs and expanding California's economy.
He said new taxes are not an option.
"I totally rule it out," Schwarzenegger said. "I will not raise taxes."
The Republican governor last week signed a $131 billion budget that included a $3.5 billion deficit, a gap expected to resurface next year. Schwarzenegger took credit Thursday for reducing the amount from a once-projected figure of $16.5 billion.
Angelides, the state treasurer, has promised to balance the state's budget and eliminate the structural deficit by raising income taxes on the highest earners and closing corporate tax loopholes. He has begun to emphasize that he will not increase middle-class taxes as he courts centrist voters in the general election.
Schwarzenegger and the state Republican Party have aired campaign ads since the June primary accusing Angelides of proposing $10 billion in new taxes that would hurt California's economy. Angelides has said he would only raise taxes by $5 billion, arguing that affluent California taxpayers can afford it because of federal tax reductions.
The governor said his opposition to tax hikes has enabled the economy to grow and returned more money to the state through the existing tax structure.
"The key thing is to work and make sure that we keep our economy stimulated," Schwarzenegger said. "I mean, this is the very thing that has bailed us out so far. If you increase taxes, that would be the worst thing to do."
After suffering across-the-board defeats in last year's special election, Schwarzenegger has regained his footing this year by reaching a bipartisan agreement to place $37.3 billion in public works bonds on the ballot, striking a deal with education groups to repay schools and signing the timeliest budget in six years. He benefited in part from a one-time, $7.5 billion windfall in tax revenues this year.
Data released Thursday by the Survey and Policy Research Institute at San Jose State University showed Schwarzenegger leading Angelides by seven points in the gubernatorial race.
Schwarzenegger seemed particularly confident Thursday, at one point stating, "I think that we should all declare victory. The state is doing well."
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Schwarzenegger, in a wide-ranging interview, said the education debate too often focuses on funding levels rather than finding ways to make schools more efficient.
He suggested building "more sensible schools" that serve as community centers after school and on weekends.
On health care, Schwarzenegger said, "I don't believe in universal health care, but I do believe we have to make an effort to insure more people."
If re-elected, Schwarzenegger said he wants to focus next year on providing health care for the state's 6 million or more uninsured residents. He said, "I want to have that ready for my State of the State address and really challenge the legislators to work together to solve this."
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"I think that I'm more inclusive now than I was maybe a year ago, that has changed, and also the way I communicate," he said.
The complete article can be found at:
http://www.sacbee.com/content/politics/ca/
election/story/14275645p-15085199c.html
Date: 7/7/2006
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