Guv. on Taxes

Governor Schwarzenegger appeared on the Eric Hogue show this morning, with guest Dan Weintrab interviewing him. They spoke about the possibility of an increase in taxes if Live Within Our Means (aka Prop 76) fails this fall: Governor: "I think we have to understand, there's only two ways to balance a budget. Theres only two ways to go. One is that we live within our means and that we only spend what we have, which is the way we should go, the responsible way. The other one is the way, the direction they are going right now, which is to spend more and more money and what they want to do is drive us into a corner so that they can raise taxes." Weintraub: "You've put the solution out there, you've put your answer out there. If it is not adopted, won't you then be into that very corner and forced to consider -- Governor: "Absolutely. Absolutely. Then we have to look at raising taxes. Because this is the only option we have in order to create the money. This is why I tell people, vote yes on Proposition 76, and make sure that we do everything we can to pass this proposition so that we force our legislators once and for all to live within their means and not to continue spending money and to keep making promises to people that they can't keep." Very very interesting. There has been a strain of thought in the Capitol that if the Governor loses this fall, he has sufficient political cover to consider raising taxes...maybe he agrees.