Saturday, January 10, 2009

CA Court Rejects Lawsuit Against Tax Increases

There has been a lot of talk about the California budget here in my hometown of Sacramento. Recently, a State Legislator went a roundabout way of increasing the state’s revenue without needing a super majority vote to pass a tax increase. Almost immediately, anti-tax groups here in California filed motions with the Supreme Court. However, according to the Associated Press, the appeals court has rejected the motion:

A California appeals court has tossed out a lawsuit filed by anti-tax groups that sought to block a package of tax increases passed by Democrats in the state Legislature.

Citing separation of powers, the court ruled Wednesday it could not intervene because Gov. Arnold Schwarzenegger had not signed it into law.

Schwarzenegger eventually vetoed the $18 billion proposal to help close California's $42 billion budget deficit.

The lawsuit was filed by the Howard Jarvis Taxpayers Association, with support from most Republican state lawmakers.

They argued that the Democratic majority acted illegally when it passed the tax increases because it did so with a simple majority vote. The state Constitution requires a two-thirds majority for tax increases.

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