The California budget deficit could now reach $28 billion over the next 18 months due to estate tax cuts proposed by Obama. These cuts will cost California $2.7 billion in expected revenue, as it raises the excluded amount from $8 million to $10 million, and lowers the tax rate from 55% to 35% on estates.
The partisan lines in the debate over extending Bush's tax cuts are clear at this point: (most) Democrats want tax cuts for the middle and lower class, but not for the wealthy- the top two percent of income earners in the country. Republicans on the other hand, want tax cuts for everyone, including the wealthy, no exceptions.