California's Republican Legislative Leaders caved in today to a proposal which would bring massive, across-the-board Tax increases to the People of California.

After 9 straight months of standing firm on No New Taxes, the unfortunate political realities set in as Senate Leader Dave Cogdill and Assembly Leader Mike Villines chalked up their names in support of a new Budget proposal, which includes the following:
a one-cent Sales Tax Increase, a 12-cent-per-gallon Gas Tax Increase, across-the-board Income Tax Increases, and a near doubling of the Vehicle License Fee.

The Tax Increases are coupled with a few goodies for fiscal conservatives, but nothing near what the Republican Leaders might have extracted had they held out for another pound of flesh. Looming reports of 20,000 State workers expecting to get pink slips this Friday must have spooked them into the deal. I don't know about you, but the downsizing of State workers is precisely what I thought we needed.

The Budget Proposal is expected to be Voted on this Friday.  Rest assured, The Street  - and countless others - will be keeping a close eye on how folks vote.