A good name for Gov. Arnold Schwarzenegger’s proposal to rebuild California’s infrastructure would be “The Terminator’s Welfare Plan for California Billionaires.�
The $68 billion he wants to borrow, plus the $15 billion he has already borrowed — considering the funds would most likely be raised by selling 30-year municipal bonds paying approximately 6 percent interest — would require California taxpayers to come up with annual interest payments of nearly $5 billion, plus the principal of $83 billion at the end of the 30 years. Most of this would go to California billionaires, income on which they would pay no federal income tax, California state income tax, Social Security tax, Medicare tax or California state disability tax whatsoever.
Of course, raising the minimum wage would help somewhat, since waiters, waitresses and other minimum wage working people would be paying more in taxes that would help the State of California make the required payments to the billionaires.
— Newell Gragg, Ventura