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California Democrats Propose Tax Increases

Sacramento, CA — Democrat lawmakers are insisting on higher taxes to close California’s budget shortfall.

But Governor Schwarzenegger is warning he will veto any plan that includes new revenue beyond what he has already proposed. A Democrat-controlled legislative committee proposed increasing cigarette taxes by $1.50 per pack and imposing a 9.9 percent tax on oil production.

It also wants a $15 increase in the vehicle license fee and requires income tax withholdings for independent contractors.