Rescue California

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Transcript of gubernatorial recall debate

September 24, 2003

Page 7

for California. In that plan, I raised tobacco taxes, I raised alcohol taxes, I raised the upper income tax brackets on the largest and the highest 4 percent of all Californians. I do that, but in return we close the budget gap, we fully fund education, we put 123,000 community college students back into our colleges, and we relieve the car tax for all those vehicles that are under $20,000. We do something in terms of raising taxes. She called it raising revenues. We know what it really is. But at the same time, we get something good for California.

HUFFINGTON: You know it's tough love for everybody except for Indian gaming tribes and the prison guards union. And that's really the problem here, it's tough love for everybody except for big campaign contributors.

McCLINTOCK: It's certainly tough on taxpayers, that's for sure. And here's the problem that I would pose. What makes you think that your $8 billion in tax increases is going to do anything differently than when Pete Wilson raised taxes $7 billion in 1991? Those taxes broke the back on the economy and they turned a recession into a near depression. And we actually ended up collecting a billion dollars less total revenue after those tax increases went into effect than what we had been collecting before they had gone into effect.

BUSTAMANTE: Exactly. I believe, Tom, that the future of California really is investing in our education. You know we're closing down community colleges, 123,000 students are not going to be going to community college this year. Everything we have done in California has been based on research, you know that. Unfortunately, those of us who have been working diligently to try to make sure that we keep tuition low, and allow (unintelligible) for every single student, we know that our future really is .... It's not just some slogan, it's not something we put on a brochure.

MODERATOR: All right, you've both made your points on this. Except for Mr. Schwarzenegger needs another shot at this.

SCHWARZENEGGER: Yeah, I don't understand all this ... so what you're saying all this ... The politicians make a mistake, they keep spending and spending and spending, then when they realize they made a mistake and spent money they don't even have, then they go out and go tax, tax, tax. That's the answer to the problem? What about finance spending?

BUSTAMANTE: Well, in fact, when I was speaker, we voted a middle-income tax cut.

SCHWARZENEGGER: What you have to do is put a spending cap on it. You guys have an addiction problem. You should go to an addiction place because you cannot stop spending. What happens then is if you keep spending.

BUSTAMANTE: Well, that's what happens when you simplify things.

SCHWARZENEGGER: What happens then is if you spend, spend, spend, then you have tax, tax, tax, but all of a sudden you say, 'Where are the jobs?' Gone, gone, gone. That's the problem that we're facing here.

MODERATOR: All right, thank you. Hang on right here, what do you got, Arianna? Short?

HUFFINGTON: Arnold's analysis fits perfect the Bush administration in Washington. They keep spending, spending, and you have to...

SCHWARZENEGGER: Arianna, you can campaign against Bush. Arianna, if you want to campaign against Bush, go to New Hampshire.

HUFFINGTON: No.

SCHWARZENEGGER: Go to New Hampshire. It's the perfect place for you. You're in the wrong state right now.

HUFFINGTON: No, you know, because otherwise, it's so hypocritical for you...

SCHWARZENEGGER: Or maybe a little bit more decaf.

HUFFINGTON: No! You know what?