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New California Governor Wants to Hike Car, Candy, Liquor Newspaper Taxes

January 11, 1991

SACRAMENTO, Calif. (AP) _ Gov. Pete Wilson said Thursday he wants to close a $7 billion state budget shortfall by cutting school and welfare programs while boosting taxes on cars, candy, comics, newspapers and liquor.

His proposed $55.7 billion budget package includes $1.8 billion in tax increases, $1.9 billion in decreased school funding and $3 billion in other spending cuts.

″California is for certain passing through heavy seas financially,″ the new Republican governor told reporters. ″We’re faced with an unprecedented gap between revenues and expenses at the current level.

The plan includes a 9 percent cut in welfare benefits for poor mothers and children and a 20 percent increases in fees for University of California, California State University and community college students.

″I’m not coming unglued with this proposal, but there are serious detriments to schools here,″ said state school Superintendent Bill Honig.

Wilson proposed raising $781 million by increasing the vehicle license fee. The proposed alcohol taxes, which would raise $190 million, would raise the tax on beer would increase from four cents a gallon to 20 cents, on wine from one or two cents to 20 cents and on distilled spirits from $2 a gallon to $3.30.

Wilson proposed raising $270 million by extending the 6 percent state sales tax to candy and snack foods and another $114 million by extending it to newspapers, comics and magazines.

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