Don't Blame the Sales Tax
Yet another state faces a shortfall - and it's the income tax that bears the blame. California's deficit has hit a whopping $34.8 billion - about $1,000 for every person in the state.

[Gov. Gray] Davis, a Democrat, said the deficit over the next 18 months is up from a previously estimated $21 billion mainly because of a nosedive in personal income tax revenues, which make up a healthy portion of revenues flowing into the state treasury.

Revenue from the sales tax is not to blame.

Some good news from the story: Voters may soon see a clear distinction between Republicans and Democrats on fiscal issues, as California's elected Republicans favor spending restraint while the Democrats favor propping up unaffordable big spending with higher taxes. Of course you knew that already. Reports Reuters: Republicans have called for reduced spending while Democrats urge tax hikes in order to preserve important state programs.