Anti-tax Governor Considers Closing Tax Loopholes

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In January, with a 14 billion dollar deficit, Governor Schwarzenegger proposed a 10% cut in spending across the board including almost 5 billion from schools. Now the deficit is estimated at 16 billion by the Legislative Analyst, Elizabeth Hill. She works for both Democrats and Republicans; she conducts bipartisan analysis of legislative proposals, and this year she’s come up with some ideas of her own. She says the state could save some programs—especially in education—by eliminating what are called “loopholes” that are not as valuable. When it comes to closing so-called ”tax loop holes,” Governor Schwarzenegger says Ms. Hill has a good idea. He “When he have a financial crisis like this, we all should chip in.” But that’s not a sentiment shared by many fellow Republicans.



  • Elizabeth Hill - Legislative Analyst for the State of CA Legislative Analyst's Office
  • Roger Niello - Republican Assemblyman
  • Ken Miller - Assistant Professor of Government at Claremont McKenna College


Warren Olney