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Arnold Says Hasta la Vista to Welfare, Considers Flat Tax


Governor Schwarzenegger has proposed a $500 million cut to welfare in California to help terminate the state's $5.5 billion shortfall.  On top of the cut in spending, Arnold is even considering a 15 percent flat tax.

Many of the states' wealthy individuals are getting to the choppa and moving out of state to avoid higher taxes in California.  A flat tax might encourage them to stay or even move back, which could result in higher returns for the California government down the road.