With Governor Arnold Schwarzenegger's about face and huge new spending proposals, the obvious question is how the heck is he going to pay for it. Especially with his ongoing pledge of no new taxes. On Friday Arnold stood in front of Sacramento's Nimbus Dam on the American River to give the details of one piece of the enormous plan - his proposed flood protection package. John Myers at Capitol Notes has a great piece which underscores Schwarzenegger's command of the issues.
(snip)
To help pay for the water protection elements, Schwarzenegger is proposing $5 billion in new water user fees (the administration is technically calling it a "water resources investment" fund). The fee would amount to $3 a month for every residential water user in the state, and $10 a month for every industrial water user.
But why isn't that a tax, asked a reporter today? And isn't Schwarzenegger opposed to taxes? Here's the governor's answer:
"You know, a lot of times, you know, fees are fees and taxes are taxes. And that's why they're called fees. And that's why they're called taxes."
Thanks for clearing that up Arnold. You have obviously mastered the complexities of running the seventh largest economy in the world.
Perhaps we can get Ahnold to talk to Bush about replacing the estate tax with an estate fee!
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