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Around Disney ~ New, tips and photos from the Orange County resort area.

The Mouse is mad over Governor’s plan to tax tickets

November 7th, 2008, 11:01 am · 51 Comments · posted by Adam Townsend, Staff Writer

Schwarzenegger Calls Special Session On California Budget

Disneyland is predictably angry about Gov. Arnold Schwarzenegger’s plan to tax theme park tickets and tickets to sporting events to reduce state revenue shortfalls. (At-a-glance fact sheet of the proposal IS HERE.)

“We oppose the Governor’s proposed theme park tax because it unfairly targets the tourism industry and may deter new visitors to the Golden State at a time we need them most,” said resort spokeswoman Lisa Haines in an e-mail statement. “This tax is not worth the risk to an industry that is a proven job creator and economic engine for California’s growth.”

[ VOTE: Tax a good idea? CLICK HERE! ]

Yesterday, Schwarzenegger today announced a financial rescue package for the state government that includes a 1.5 percentage point hike in the state retail tax that would take Orange County’s sales tax rate to 9.25%. (The state would get 6.5%.) The fresh cash is needed to backfill an $11 billion deficit in this year’s budget. Local reaction was largely negative:

  • The governor hopes to apply sales taxes to, among other things, auto repair and veterinarian services. One Orange County vet called it “devastating” as a repair shop owner calls it “bizarre.” More service-provider reaction IS HERE!
  • Retailers were unhappy. Hezy Shaked, CEO of the Irvine-based Tilly’s clothing chain, had this to say: “In this tough economy, any increase in price to the consumer is going to be devastating.” (MORE HERE!)
  • Merchants at South Plaza were bummed, too. Read THAT HERE!
  • Peter Navarro, a UC Irvine economist: “Contractionary shock rather than a fiscal stimulus.” (MORE HERE!)
  • Not all reaction was glum. At least one economist — Jane V. Hall at Cal State Fullerton — thinks some of the targeted spending in the goverrnor’s plan could boost jobs. (MORE HERE!)
  • Other Disneyland news:

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    51 Comments

    51 Comments

    • Screw Mickey tax him into the Stratosphere along with the top 1%
      The Disney Mouse has been dining on Brie for too long let him eat cheddar along with the rest of the middle class

    • Rechelle says:

      Okay Sean, Mickey is a fictional character. Sadly, however, Disney’s probably mad that its customers will buy less of their enormous supply of useless theme park items that they are already having trouble selling to Americans.

      I think the Governator needs to dig deep into his own pockets and leave the state alone! Perhaps he could sell his Hummer and send his kids to public school!

    • Steve says:

      CHEDDAR?
      TRY AMERICAN SLICES!
      $69 TO FROLICK IN THE MAGIC KINGDOM?
      NOT IN MY LIFETIME!

      I WOULDN’T MIND SO MUCH THE SALES TAX INCREASE, AS THIS WOULDN’T HURT SO BAD AS AN OUTRAGEOUS RAISE IN STATE INCOME TAX WHICH PRESENTLY IS LUDICROUS!
      I THINK THE GOVERNATOR OUGHTA CONSIDER THE OBAMA PROPOSAL, AND RAISE TAXES ON THOSE WHO CAN MOST AFFORD IT, LIKE THOSE EARNING OVER $200K A YEAR

      IF NOT, I MAY HAFTA RELOCATE TO NEVADA

    • FED UP! says:

      Disney has the power to lower their prices. I was there a few weeks ago and that place was packed, you couldn’t even move. Again Disney if you’re so concerned lower your prices then. By the way, Disneyland tickets are $85.00 just to get into the Disneyland park, not Dinesy Ca. adventure, as that will cost you MORE and then you stand for hours to get through the lines. The food prices are ridiculous too!

    • Randy says:

      Sean, in case you missed the point of the article, it’s not about taxing Mickey, or any other amusement/theme park. It’s about adding sales tax to the ticket prices. Which means it costs more to get in, but the park owner/operator doesn’t get any more money, the state does. It has nothing to do with taxing Mickey, it’s about taxing visitors to the theme parks.

    • JCC in OC says:

      Once again the hard working class will get “shafted” when you want to take your kid to Disneyland or get your car fixed. Work harder others depend on your INCOME.

    • Irving says:

      Disney criticizing someone for mercilessly maximizing revenues? Man, is that ever the proverbial pot calling the kettle black.

    • Ryan says:

      I think sean missed the news that Obama in fact won the election.

      In direct reference to the article, and a basic economics 101 lesson, the tax is money that goes to the state.
      Disney isn’t the one increasing the tax, the state is.

    • HarleyJazz says:

      Randym\, you nailed it. What I don’t understand is why the reported worded it the way he did: a new tax “to reduce state revenue shortfalls” I am not as angry at Arnold as I am at our legislative bodies both state and federal. They spend our money and when they run out they just vote to take more from us. Could you do that to YOUR boss ? I couldn’t. I think we should fire them all and start over. The problem is that most people think everybody elses should be fired, but their congressman (state and Fed) are okay and we should keep them. Oh well.

    • CHARLES C says:

      SPOKEN LIKE A TRUE SOCIALIST SEAN. IF YOU ARE A SCREW UP IT’S YOUR FAULT.
      NOT A MOUSE FAN HERE BUT WHY BLAME THE MOUSE FOR HIS SUCCESS OR YOUR FAILURE FOR THAT MATTER?

    • CHARLES C says:

      FOR THAT MATTER SEAN, WHY SHOULD YOU GET TO EAT CHEDDAR AND BE MIDDLE CLASS? DO YOU THINK WE SHOULD ALL BE EQUAL? EVEN THOSE WHO DON’T WORK FOR IT. YOU’RE LAZIER THAN THE MOUSE AND MAD ABOUT IT.

    • Ham Radio says:

      Notice Arnold does not propose sales taxes on movie ticket admissions or the film industry, an area he will return to when he’s termed out of office. Instead he will hose tourism.

    • anaheim86 says:

      they should tax the mouse!!!!! why not…they do to everyone else

    • Kimo says:

      Just another terrible idea from a governor who is in way over his head. A 9.25% sales tax in O.C. will put another crimp in retail sales across the county including Disneyland, Knott’s Berry Farm, and other entertainment venues. Raising the sales tax will NOT result in increased revenues for the state because everyone was already cutting back on their spending due to the economic downturn and now the Governator has given everyone another reason to cut back even more. Why doesn’t he suggest something that WILL have an immediate impact on the state budget? Maybe cutting all elected officials salaries by 10% would be a good start!

    • Patriot says:

      Well we will not be going to Disneyland, Knotts Beery Farm, or an Angel’s game anymore. Thanks Arnold! I remember when you compaigned on the “no taxes” rant. Like we beleive that a 1.5% tax will be temporary! GIVE ME A BREAK! What a waste of a governator!

    • Digger says:

      Having grown up in Hawaii, I’ve seen the devestation that is created by constantly rising prices. Native Hawaiians can barely afford to pay their mortgages, rents, etc… Albeit for different reasons the result is the same. The poor remain poor, the middle class is forced to more financially affordable living conditions (Hawaiians are migrating to Oregon) and the rich continue to live on. Ultimately the Governor is going to break the backs of the middle class. This is a bad idea.

    • Christa in Garden Grove says:

      This is the most absurd thing to do in a time of hardship already. We already pay ENOUGH taxes! I could care less if they plan to add sales tax to theme park tickets, go ahead and let all these tourists pay off our deficit. Right now people in Southern California cannot afford a tax hike on retail, I mean 9.25%! Are you kidding me? Next 50% of may pay check ? I mean where do you want it to stop! I think our Governator needs to kick back on his crappy spending and maybe reduce some things that shouldn’t be funded in the first place. I’m pretty sure Mickey Mouse could run California better right now.

    • Troy says:

      SEAN IN NEWPORT BEACH needs to read the article again, or perhaps take a nap and start the day over again.

      The tax would be a tax on you Sean, not Disney. YOU will be paying this tax directly to Sacramento bureacrats, and Disney won’t see a dime of it.

    • Mario says:

      Why do they let actors become part of government. Doesnt Arnold put on a good act?

    • Scholastica8 says:

      I would rather see the overall sales tax lowered, but a new sales tax placed on all online sales.

      I know that I often compare the shipping price to the local sales tax. If the item is pretty much the same locally & online, then the sales tax vs shipping cost is the deal breaker.

      If online sales were taxed, then local stores might be the winners.

    • Mario says:

      Anyone know when Arnold term is done? I wish it was today.

    • jim in kal-i-fornia says:

      The political timing of this proposal to increase sales taxes is just what the leemings of this state deserve. Let’s just keep on ignoring how our liberties and our lives are being voted out of existence by our “elected representatives” and their “special interests”. Those of us who refuse to become educated on the issues and candidates that impact our lives, deserve to lose their God given freedoms in return for government hand-outs, programs, and empty promises. Welcome to the new land of lies, servitude, and shrinking paychecks.

    • Slave says:

      Tax everything. Getting in is cheap compared to the food and trinket costs. Hot dogs, chips and coke - $10 a person and that is only one meal…consider visiting all day! Go ahead, tax the food, we will eat less and most of the visitors are too fat anyway. Tax the trinkets, not being made by Americans it all comes from China. No one will be put out of work.

      What the Governator should do is reduce the state workforce payroll equal to the increase he is seeking in taxes. Start with Caltrans. Can’t believe it takes 5 Caltrans guys overseeing one dude digging a hole or setting a post. Or how about the DMV? An army of workers milling around while 40-50 people stand in line.

    • toxicnut says:

      Cest la Vie, just another screw in the coffin of the middle class. Anyone for revolution yet? Dont see Arnie suggesting a luxury tax to help offset the shortfall. Just keep heaping on the back of the middle class and soon so many will move from California there will be NO revenue for the state from taxes. Obama may not kill us with taxes but our own state governor will.

    • Mikeandmike says:

      What is wrong with the people blogging in here. Do you not know that we have a 26billion dollar deficit?? My gosh, I am sorry but there is no quick fix for the economic problem. And by taxing the tickets, that only means that the the tax cuts into Disneys revenue. Now it is up to Disney if they want to raise the tickey prices to subsidize for that loss. Raising ticket prices is not up to the state.

      Also I dont like the idea of raising taxes either. But we dont have much of a choice. I am sure Arnold does not want to be unpopular with the citizens of California. But there is some info. that this state is really in bad shape and the Govenor has to take drastic measures.

    • Mikeandmike says:

      And to elaborate on Sean’s statement. Both sides of the bloggers are right. No the increase taxation on Tickets does not directly effect us. It is up to Disney if they want to raise ticket prices to meet their quota.

      I apologize for my misspelling on the last paragraph.

    • j.p muley says:

      Hey arnold,how about this to save money the 11 billion a year spent on those people who dont belong in our state,you know the free medical,food,housing,child care, school supplies, welfare for them,since they dont pay taxes or ever will cut that money off you then save our state and can leave mickey alone? wow that was easy.maybe you can hire me to make some more easy ways to save our state.just be the termanator like we all thought you would be,of course you fooled us we forgot you was a actor..dumm me,..oh yea i forgot the woman pushing a stroller with 4 kids in tow and one ready to pop out…that comes from our pockets also…

    • bw says:

      If Disney is worried about attendance, they could lower ticket prices 1.5%. Just a thought.

    • omgrukidding says:

      WOW, so much for the LOWER TAXES IN CALIFORNIA… governator sucks

    • NO NEW TAXES! says:

      Why cant arnold cut state funded programs? Why is the solution always raise taxes on the private sector bums? While my 401k has lost almost 3/4 of its value, all these “public servants” are retiring at 55 with 81% of pay for life!

    • Dana Baldwin says:

      So Disney is frustrated with the thought of being taxed by the State, so they raise their ticket price by almost 5% & expect the public to not care? Who can afford to take there family to Disneyland at $70 per person!

    • Chuck says:

      Looks like the Governor and State Legislature have becom an extension of Disneyland…another Mickey Mouse organization!

    • ocdoc says:

      Disney will see the dime for a short time…the time between when you pay the tax and the time when they pay the state.
      The question is whether or not Bob and Christine Iger still support neoconservative candidates like Arnold portrayed himself in 2004-5.
      Iger needs to think about it…
      the rest of us need to start a new recall movement.

    • los says:

      Impeach him and the rest who propose tax increases. They screwed up with all their pet projects and now they want to to charge us more than they already do. When I have a budget shortfall I cut my spending, why can’ the state look for programs that are wasteful and cut them. I also think voters need to be a little smarter when they vote for bond measures come one people we don’t have money and you still approve close to a billion on a childrens hospitals (I love kids too, I was one once) but their is a time for fiscal restraint and now is the time.

    • realist says:

      If this tax passes, less people visit the parks, less money is spent, disney lays off employees as does downtown disney shops. More people looking for jobs, more people on unemployment-yeah Sean that sounds just like what our economy needs right now.

    • R.L. says:

      Arnorld is not only an abysmal failure he’s an outright liar. This state needs leaders not lying and taxing bureaucrats. Hey, Arnold how about you stop ignoring the huge elephant in the room. Illegal aliens cost this state over ten billion dollars a year. These people are robbing us blind. Instead you don’t want to confront the real issue(s), but your most certainly not afraid to tax the citizens of this state into oblivion.

    • Cliff says:

      DONT RAISE TAXES!!!

    • JayGee says:

      High prices don’t stop people from going to Disneyland. They had 50k one day this weekend. Kind of like fast trak prices going up. When the price gets high enough and fewer people use it, it gets better.

      Actually, we can simply take the freeloaders (illegals) off the payroll and our problems with money are solved.

    • John S. says:

      Yeah! Let’s tax and screw the big corporations! Hooray!

      Wait… How come I pay more for tickets, gas, plumber, etc.
      Oh, that’s right, we got back at those big corporations with more taxes.

      Now, for the cost of that doctor’s, lawyer’s, etc. office call that will go up if our new prez has his way.

    • Troy says:

      I love the comments here from people complaining that Disneyland was too crowded when they went last week and there were too many people there!

      Disneyland is too succesful! Disneyland is crowded! They should lower their ticket prices so more people can get in and make the lines even longer! How dare Disneyland offer a product that lots of people want to buy!

      Disneyland’s success and big crowds of customers should be punished!

      I just don’t get that logic. Do you people also go down to the Lexus dealership and yell at them?… “How dare you produce a quality luxury car that is more expensive than my used Chevy! Lower your prices Lexus, so I can afford a fancy car too!”

    • Sam says:

      How can a state that doles out billions to illegal aliens every year increase taxes on it’s legal citizens to cover a deficit?

      What a joke. Arnold needs to go.

    • Tim says:

      Mikeandmike,
      Yes, we have a very large deficit, but it’s only because the socialists in Sacramento keep spending our money. What about all the free benefits the illegal aliens are getting? Don’t hear anything about that. Why is that not on the table? The State should be required to give us detailed information on each spending program for the past 5 years. We’ve seen a tremendous increase in spending. There has to be something which can get cut or reduced.

    • zacksmom says:

      jp muley hit the nail on the head. Iseveryone in our state is fed up with being taxed to death and having their real wages stagnate or fall while jobs are shipped to China and India and while illegals suppress wages here and take most of the low income programs that could help out of work American’s? We need to stand up for our rights. Don’t let the middle class be eliminated. Look at Mexico: a very large group of very poor people and a ruling class of very wealthy people, hardly anything in between.

    • bpsqwerty says:

      “Disney has the power to lower their prices. I was there a few weeks ago and that place was packed, you couldn’t even move. Again Disney if you’re so concerned lower your prices then. ”

      this is actually a contradiction… you’re worried the park is too crowded, yet you lambast Disney that the ticket prices are too high. therein lies the paradox, if they LOWERED the ticket prices, the park would be even MORE crowded and/or sold out so you couldn’t get in at all. they would be turning the remaining people away and tell them to come back later in the day.

      a better idea would be to go when it’s (naturally) slightly less crowded.
      plus if you’re missing your $85 that badly then definitely take advantage of the ahem, free offers, ahead. surely you can afford free, no? I don’t see the Angels or the Ducks or Knott’s or Universal Studios letting people in free just for asking.

      I realize Troy already beat me to the punch on this, but just had to add my $0.02 or .03…

    • Steve R says:

      The ignorance of some of posters here pretty much explains the recent elections.

      For those of you that are completely out of touch. A tax on a Disney Ticket is not a tax on Disney. It’s a tax on you every time you want to go to the park.

      Here a fun fact. If this tax does go into effect, just have someone you know out of state go online and buy the tickets for you and mail them to you as a gift. No sales tax.

      Oh, and if you think Disney is making money hands over foot you need to take a look at there stock performance over the last two months.

      And for Sean: Its voters like you that believe in entitlement.

      EX: A 50 year old doctor who has worked his whole life, first paying back student loans, establishing a successful practice. Works long hours. People like you see him driving around town in his 100,000 MB and you say to yourself, that’s not fair. Why does he get a cool car? A great House. He’s not better then me. I deserve everything he has. Sean people like you vote ignorance first, logic second.

    • Scott M. says:

      It FAIRLY targets the entertainment industry in California, which has been getting a free ride.

      I have to pay tax to buy a book - why should the movie made from it be tax-exempt?

    • John G says:

      I guess it’s easier to tax Disney than getting illegals out.
      You know, the ones who are benefiting from free health care and free education the rest of us pay for.

    • Rebecca says:

      When my budget is out of balance the first thing I do is cut spending. How come I never see a headline like “Governor attacks waste of public funds”? Also, if you barely passed reading comprehension then why flaunt it? Quit commenting on articles you don’t understand. It’s not “sticking it to the industry”. It’s just giving Ahnold more $ to waste.

    • john says:

      it is evil to hurt mickey.I say lets kick out the liberal democrats and arnie at the same time.The problem with california is that you spend too much and taxes are already way too high.With a bad economy this will only hurt disney which means less money spent in the local economy.Taxing the rich will only encourage them to move somewhere else.If I were rich I would move to a state that does not have an income tax like Texas or Florida.

    • George Buaku says:

      This is a slap in the face of all who voted this former steroid user into office. The last time I checked Gov G Davis was impeached and thrown out of office because he proposed an increase in vehicle registration to help balance the budget. Arnold steroiduser promised not to raise taxes voters believed him. Its time to IMPEACH him too.

    • George Buaku says:

      We are in this mess due to one individual, Darrel Issah who paid with his money to help get rid of Gray Davis and put a republican Arnold Steroiduser in office. Thanks a lot Issah

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