Taxpayer Group Slams Gov. Davis for Breaking Promise on Tax Increases, Says Solution is Spending Restraint, Not More Taxes

5/31/2002

From: Pete Sepp or Jerry W. Terry of the National Taxpayers Union, 703-683-5700

ALEXANDRIA, Va., May 31 -- As Gov. Gray Davis and the California Legislature seek to balance next year's budget, the 335,000-member National Taxpayers Union (NTU) called on Gov. Davis to cut wasteful government spending instead of increasing the already-excessive tax burden imposed on California's taxpayers.

"Earlier this year Governor Davis made a commitment to work for a state budget that would meet the state's spending needs without a tax increase," observed NTU President John Berthoud. "That is a very achievable goal -- if California's politicians will look out for the best interests of their constituents, rather than cater to special interests. Unfortunately, now that the moment of truth is here, Governor Davis is changing his tune and has proposed $2 billion in tax increases."

In his 2002 State of the State Address earlier this year, Gov. Davis promised, "The Budget I will submit to you...will not increase taxes." However, over the last few weeks he has proposed $2 billion in vehicle license fee and tobacco tax increases.

"There is simply no good reason to raise the burden imposed on California's taxpayers," noted Berthoud. "California's spending has far outpaced the rate of inflation and population growth, leaving no doubt that the state's budget crunch is a result of out-of-control spending, not a shortage of revenues."

According to National Taxpayers Union's research of U.S. Census Bureau statistics, California's total expenditures grew 85 percent between 1991 and 2001, rising from $75.9 billion to $140.6 billion. If spending had matched the rate of inflation and California's population growth, 2001's spending would have been only $112.5 billion, or about $28 billion less than the actual budget -- more than enough to account for next year's projected "shortfall."

"The governor promised taxpayers that he would balance the budget without tax increases, and he can and should keep that promise," concluded Berthoud. "Trimming wasteful and unnecessary spending may not be easy for Governor Davis, but it is the best solution for California's taxpayers and for the state's long-term economic health. National Taxpayers Union's 60,500 California members call upon the legislature to honor the commitment that Governor Davis previously made, and pass a budget that restrains spending and doesn't hike taxes."

The 335,000-member National Taxpayers Union was founded in 1969 to work for lower taxes, the elimination of wasteful government spending, and more accountability from elected officials at all levels of government. More information is available online at http://www.ntu.org, or by calling 703-683-5700.