Via All Headline News:
To address a state budget deficit of $14 billion for 2008, California Governor Arnold Schwarzenegger is proposing a variety of measures including a 1.25 percent levy on real property insurance policies. The state’s insurance industry is said to agree to the proposal to collect $12.50 for every $1,000 insurance premiums purchased in the state. He announced the measure at his fifth State of the State address on Wednesday.
The measure is expected to raise $125 million, to fund a larger state fire fighting unit including more crew, helicopters, fire engines and satellite tracking devices. A few years ago, San Diego voters often hit by bushfires, rejected a proposal to imposed higher local hotel taxes to improve the state’s firefighting capability.
Tax hikes suck, but at least this proposed hike seems to involve a logical connection between what’s being taxed and what the revenues will be used to fund.
