California's Budget

Faced with a projected $16 billion budget deficit, Governor Schwarzenegger has called for across-the-board cuts to most state programs. But yesterday, he said his administration "should go after" so-called tax loopholes in order to raise money for the state budget. In his speech, the Governor initially indicated his support for a proposal by the state's Legislative Analyst to close $2.7 billion in tax loopholes, but later tempered the statement while speaking to reporters, saying "I'm not for the recommendations ... necessarily." Larry and his guests Mac Taylor, Deputy in the Legislative Analyst's Office, and Evan Halper, staff writer for the Los Angeles Times, discuss the possible cutbacks in tax breaks.