Yesterday the State Controller announced the State has a $8.5 billion cash deficit.
The Legislative Analyst Office says the State has a $340 billion debt. Part of that debt is $10 billion owed to the Federal government, loaned to us so we can continue to send out unemployment checks. Every September we pay interest on this debt, this September it will be north of $400 million. This debt goes back to Arnold borrowing the money. Since then we have NOT paid a dime on the principal—only paid interest.
Now Gov Brown wants to raise taxes on businesses to pay off this State debt. Imagine how many more jobs will be killed by this effort. Imagine how many firms will leave the State?
“This year alone the tax increase on employers will amount to more than $900 million – and the state will pay over $200 million in interest,” said Assemblyman Jones. “Friends, we just can’t sit around and do nothing anymore. California’s businesses shouldn’t have to pay for the mistake of California’s leadership.”