Posts Tagged ‘ budget ’

Obama Names Volcker to Head New Economic Advisory Board

(Reuters) – US President-elect Barack Obama on Wednesday announced a new panel to advise him on stabilizing financial markets as his latest effort to tackle problems ailing the US economy.

President -elect Barack Obama promised to instill more confidence in the federal budget system and eliminate unnecessary programs.The man who will be responsible for the White House budget office — overseeing cuts in the federal budget and simultaneously overseeing a costly stimulus package will be Peter Orszag who now runs the Congressional Budget Office.Jon Decker reports

Gov. Schwarzenegger Pushes New Tax Hikes for California

Gov. Arnold Schwarzenegger called for a sharp increase in the state’s sales tax, as well as new taxes on oil drilling and alcoholic drinks to help pay for a budget shortfall of billions of dollars.

Central to his plan would be a sales tax increase of 1 1/2 cents from its current rate of 7.25 percent on the dollar to raise $10.8 billion. Republicans in the state have firmly opposed any tax increases.

Proposed new taxes include an immediate, three-year increase in the sales tax by 1.5 cents on the dollar; broadening sales and use taxes to items such as car repair, golf and veterinary services; a tax on oil extraction in the state; and an increase in alcohol taxes. The temporary increase would push the state portion of the sales tax to 8.75 percent, before any local sales taxes were considered.

A broad range of proposed budget and program cuts would require state workers to take one work day without pay a month and eliminate two state holidays and premium pay for hours worked on other holidays. The governor is also proposing changes to allow state agencies to establish four-day work weeks.