Calif. court rejects lawsuit against tax increases
2009-01-08

Category Tax Budget Deficit Time Year Nations U.S. City Sacramento States California Category Regions County Sacramento County Metropolitan Sacramento Metro People Arnold Schwarzenegger Category 2007 Source (AP)

SACRAMENTO, Calif. - A California appeals court has tossed out a lawsuit filed by anti-tax groups that sought to block a package of tax increases passed by Democrats in the state Legislature.

Citing separation of powers, the court ruled Wednesday it could not intervene because Gov. Arnold Schwarzenegger had not signed it into law.

Schwarzenegger eventually vetoed the $18 billion proposal to help close California's $42 billion budget deficit.

The lawsuit was filed by the Howard Jarvis Taxpayers Association, with support from most Republican state lawmakers.

They argued that the Democratic majority acted illegally when it passed the tax increases because it did so with a simple majority vote. The state Constitution requires a two-thirds majority for tax increases.