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Treasurer: Raise Taxes To Save Education

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California´s treasurer is proposing that lawmakers raise taxes to head off education budget cuts.

Treasurer Phil Angelides says cutting education funding would hurt the state´s economy both in the short and the long term. He´s suggesting lawmakers consider raising business and alcohol taxes and expanding the sales tax to cover certain services. Those increases would be on top of the higher tobacco sales and income taxes on the wealthy proposed by Governor Davis.

Meanwhile, the top Republican on the Assembly Budget Committee is claiming that Democrats were trying to force tax increases by refusing to make adequate budget cuts to deal with a deficit that could reach nearly $35 billion. Assembly Speaker Herb Wesson says those comments by Assemblyman John Campbell are “ridiculous and irresponsible.”

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