Hawaii Governor Vetoes Oil Tax and Other Bills

From BusinessWeek.com:

Hawaii Gov. Linda Lingle is vetoing measures raising taxes on oil, estates and traffic abstracts.

Lingle said in her veto message of the $22 million oil tax Tuesday that it would affect every resident by increasing the amount they pay for electricity, gas, shipping, retail goods, food and propane.

Traffic abstract fees would increase in cost from $7 to $20, generating $6.5 million.

The estate tax would raise $10 million next year.

The Republican governor also vetoed a measure preventing the closure of 31 welfare eligibility offices statewide and consolidating them into two processing centers in Honolulu and Hilo.

The Legislature plans to attempt veto overrides Thursday.

Lingle signed a cigarette tax hike of 1 penny per stick, bringing in $11 million.

Schwarzenegger Says He'll Veto Democrats' Plan For Balancing Budget

California Governor Arnold Schwarzenegger spoke outside of his office earlier today, making a promise to veto the new democratic budget-balancing bill should it reach his desk. The bill includes tax hikes on oil, tobacco, and motorist fees, all of which Schwarzenegger claims are unfair for Californians already rising tax bills.

“The proposal included what the lawmakers said were $11 billion in cuts to programs dear to Democrats -- to education, healthcare and welfare -- along with $10 billion in accounting maneuvers and other financial moves such as selling state assets,” asserts the LA Times.

But it was the levies intended to raise $1.9 billion in new taxes on oil and tobacco, and fees on motorists to fund state parks, that Schwarzenegger said would be unfair to Californians after higher taxes were imposed on them in February.

"None of that will fly with me," the governor said. "It will be irresponsible after the largest tax increase in California's history just four months ago to go back to the people and to say we want to increase your taxes but we want to protect the salaries of state workers."

The Democrat-controlled budget committee Tuesday rejected the governor's proposal to cut state employee salaries by 5% on top of the two unpaid days off per month that they are already required to take. The lawmakers also dispensed with many of his steepest cuts to state programs, which would have eliminated California's welfare system, its health insurance for children and college tuition aid for low-income students.

Continue reading this story at LATimes.com

Gov. Paterson Waffles on Tax Hikes for Wealthy

From NY Daily News:

Gov. Paterson suggested Tuesday he may veto any plan to hike taxes on the wealthy.

"Everybody is trying to find a way that they can keep spending," Paterson complained. "If people think that they are going to create a false economy here by raising taxes ... I am just not going to support this."

Asked specifically if he would veto an income tax hike, Paterson said, "I think I would if there was the type of tax increase that was just designed to re-create spending."

But, in typical Paterson style, he hedged shortly afterward.

"I didn't say that I would veto an income tax hike for all time," the governor said.

Paterson said he wants the Legislature to enact $11 billion in cuts "and not use the [federal] stimulus money as a substitute for spending cuts."

The federal money should be used to protect against future deficits, he said.

Meanwhile, Sen. Eric Schneiderman (D-Manhattan) introduced a bill that would increase the 6.85% income tax to 8.25% for people making more than $250,000. Those making more than $500,000 would pay 8.97%, and those earning over $1 million would pay 10.3%.

The changes would raise more than $6 billion in additional revenue for the state, Schneiderman said.

Senate Minority Leader Dean Skelos rejected tax hikes, saying Democrats "do not know how to stop taxing."

Bush Says No to Children's Health Insurance

A few days ago President Bush vetoed a bill that would have expanded a children’s heath insurance program by over $35 million over the next five years. Speaking in Pennsylvania, Bush claimed he vetoed the bill because he felt it was a step towards federalizing medicine and inappropriately expanding the program to help more children. Senate and House Democrats alike were quick to condemn the veto, which had received bipartisan support. House Majority Leader Nanci Pelosi has already announced plans to gain enough votes to overturn the veto. For more coverage on this issue, check out CNN.com.