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Buffets tax criticism draws rebukes Original Source Link: (May no longer be active)
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Buffett's Tax Criticism Draws Rebukes
Fri Aug 15, 7:49 PM ET
By JIM WASSERMAN, Associated Press Writer
SACRAMENTO, Calif. - Comments by a billionaire adviser to Arnold Schwarzenegger that California's property taxes are too low drew sharp rebukes Friday from fellow Republicans, and highlighted the dilemma for a rookie gubernatorial candidate who has revealed little about his views.
Among the chorus of critics responding to the remarks by investment mogul Warren Buffett (news - web sites) was Democratic Gov. Gray Davis (news - web sites), himself stung by a poll released Friday that showed growing support for his ouster in the Oct. 7 recall election.
"Lord knows we have some things in California that cost a lot, but property taxes are not one of them and nobody is going to change this," Davis said at a Los Angeles elementary school.
Buffett, Schwarzenegger's economic adviser, bumped his candidate into a controversial light with remarks in The Wall Street Journal about one of California's most sacred tenets, the 25-year-old tax revolt called Proposition 13.
Buffett suggested the landmark initiative has warped the state's tax system and may need reforms that include higher property taxes. Buffett said he pays $14,401 in annual property taxes on his $500,000 home in Omaha, Neb., but only $2,264 on his $4 million home in Laguna Beach.
Proposition 13, which limits property tax hikes to no more than 2 percent a year, is considered politically untouchable in California.
Fellow Republican candidate Bill Simon, whom Davis defeated last year, immediately called on Schwarzenegger to renounce Buffett's suggestion.
"He needs to let the people of California know today and just as loudly whether he supports his adviser's scheme for massive property tax increases," Simon said in a statement.
Schwarzenegger supports the anti-tax initiative and was a keynote speaker at its silver anniversary gala earlier this summer, said spokesman Rob Stutzman.
"He is an admirer of (Proposition 13 architect) Howard Jarvis and has referred to him as the original 'Tax Terminator,'" Stutzman said. But he also supported Buffett, saying, "Turning around California's economic crisis requires a breadth of knowledge and skill that Mr. Buffett obviously is as fully qualified as anyone on Earth to contribute."
University of California, Riverside political science professor Shaun Bowler suggested Buffett's remarks were a campaign "trial balloon" to gauge public response.
The situation demonstrated a key campaign danger faced by the bodybuilder-turned-actor-turned-candidate with little or no record of public policy positions. Political analysts say advisers' opinions can easily become grafted onto the candidate.
"He takes the risk of being perceived as an empty vessel, a smart but empty vessel, into which Warren Buffett, (former U.S. Secretary of State) George Shultz and (former Gov.) Pete Wilson can pour their ideas," said Mark Petracca, a political science professor at the University of California, Irvine.
Schwarzenegger has added another high-profile adviser, actor Rob Lowe, the Los Angeles Times reported Friday. The longtime Democratic activist and former "West Wing" star is a friend of Schwarzenegger and his wife, Maria Shriver, and will coordinate celebrity support, Stutzman said.
Petracca said Schwarzenegger is clearly following the Ronald Reagan (news - web sites) model of surrounding himself with bright and well-respected people, but added that it may not work if people don't know Schwarzenegger's core beliefs.
Meanwhile, a statewide poll released Friday showed the number of Californians supporting the effort to recall Davis has grown over the last month.
The nonpartisan Field Poll found that 58 percent of likely California voters want Davis out of office, up from 51 percent last month. Sixty-eight percent believe Davis will be recalled in the Oct. 7 special election.
The survey results were almost uniformly bad news for the embattled Davis. His approval rating has plummeted to an all-time low, with just 22 percent of voters saying they like the job he is doing.
"Movement is always the most significant element of a poll like this, and we are seeing continued movement toward the recall," said Mark DiCamillo, director of the Field Poll. "And attitudes toward the recall are very firm, since people have come to their judgments of Davis over a long period of time."
Despite the poll numbers, Davis projected optimism Friday and said he always has overcome expectations of political doubters.
"This election has turned into something of a Hollywood movie and I assure you it will have a surprise ending," Davis said.
The poll, based on telephone interviews with 448 likely voters, was conducted Aug. 10-13 and had a margin of error of plus or minus 4.1 percentage points.
In San Jose, civil rights groups Friday argued for postponing the recall election, telling a federal judge that it's too late for the Justice Department (news - web sites) to approve changes in the voting process.
Four California counties with a history of low voter participation are subject to the requirement under the 1965 Voting Rights Act. The cases argued Friday focus on Monterey County, which plans fewer polling places and fewer Spanish-speaking poll workers for the election, among other changes requiring federal approval.
U.S. District Judge Jeremy Fogel said he could issue a ruling anytime.
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On the Net:
California Secretary of State: http://www.ss.ca.gov
California Voter Foundation: http://www.calvoter.org/
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