NCPA - National Center for Policy Analysis

Last Action Hero to Rescue the Golden State

September 24, 2003

With the California recall vote restored for October 7 and a debate with the other candidates scheduled for tonight, Arnold Schwarzenegger outlined his plan to rescue the Golden State in an interview in today's Wall Street Journal.

According to Schwarzenegger, he wants to slash the cost of doing business in California; unburden businesses from regulations; and bring taxes down to levels competitive with neighboring states. Within three years, he wants business groups to trumpet the fact that California is once again one of the best places in the country to do business.

To accomplish all this, he believes four sets of policies are vital and urgent:

  • Tax rates should not be raised on anyone and a reduction in taxes is necessary; also, by restructuring the tax system, he believes more businesses and jobs can be created, and that is the best way to re-balance the state's budget.
  • The California state budget should not grow faster than the California family budget, he says; therefore, he advocates a spending limit law through a constitutional amendment that caps state budget growth.
  • Next, the worker's compensation system needs an overhaul; businesses in California already pay workers' compensation costs that are more than double other states.
  • Finally, to attract world-class, 21st-century businesses, California needs a world-class education system; Schwarzenegger says he will maintain the state's testing program and bring school authority and spending closer to students, parents and local taxpayers and take it away from Sacramento bureaucrats.

Schwarzenegger says his state will prosper again when its citizens commit themselves to "Free to Choose" economics. This means removing, one by one, the innumerable impediments to growth -- excessive taxes, regulations, and deficit-spending.

Source: Arnold Schwarzenegger, "My Economics," Wall Street Journal, September 24, 2003.

For text (WSJ subscription required)

http://online.wsj.com/article/0,,SB106436169333398200,00.html

 

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