Senator Mike Morrell Challenges Gov. Newsom’s Claim to be ‘prudent with taxpayer dollars ‘

By on January 13, 2019

Yucaipa’s State Senator Mike Morrell (R-23rd District-Rancho Cucamonga) lashed out at Gov. Gavin Newsom’s proposed 2019-20 state budget on Thursday issuing a statement saying, “The governor pledged in his inaugural address that his administration would be ‘prudent with taxpayer dollars.’ Yet from the outset, his first budget commits to new programs and ongoing spending that put future generations at risk of having to deal with more government debt, already pegged at $1.3 trillion.

“It forces Californians to buy health insurance or pay a penalty, just after the federal government provided relief from this mandate. Furthermore, the health care system the governor wants to pursue could cost as much as $400 billion. To put that in context, the entire amount of income tax collected from Californians last year was $95 billion and the total state general fund budget is less than half the cost of the governor’s health care plan.

“Living in California is already unaffordable for too many – a key reason why for 15 consecutive years, more residents have moved out of California than moved into our state. Higher taxes would only add to this pressure.

“It is not ‘prudent’ if Democrat leaders in Sacramento also tell taxpayers they have no choice but to foot the bill for their socialistic priorities to increase government control over our lives.”

Morrell also put forth several key statistics as to the tax status, unfunded liabilities and other dismal facts, including:

  • California has the nation’s highest income taxes. According to the nonpartisan Tax Foundation, California is ranked 49th overall in state business tax climate.
  • Unfunded liabilities are estimated to be as high as $400 billion – more than twice the size of the state’s general fund budget.
  • Over 9,000 businesses have either left or declined to expand their operations California.
  • For 13 years in a row, California has been named the worst state for business in a survey of 500 CEOs by Chief Executive Magazine.

Sen. Morrell also cited that fact that California currently has a state sales tax of 7.25 percent which is the highest statewide rate in the nation. California tops out four number two states – Indiana, Mississippi, Rhode Island and Tennessee – all tied at a flat 7 percent.

Sen. Morrell represents the 23rd California Senate District in the state legislature, which includes portions of San Bernardino, Riverside, and Los Angeles counties including the city of Yucaipa.