Rich people get all the breaks:

Finally, Schwarzenegger had the contract structured to give him every possible tax advantage. All the money was to be paid not to Schwarzenegger but to Oak Productions Inc., a corporate front he controlled. Oak Productions, in return, "lends" Schwarzenegger's services to the production. Since Schwarzenegger didn't get any money personally from the movie itself, he had more flexibility managing his exposure to taxes. For example, Oak Productions entered into a complex tax-reimbursement scheme with the production to help avoid additional tax liabilities that might occur abroad.

I remember when I was working on a movie in LA, the lighting guys told me about a cheat that allowed them to work on the film and collect unemployment at the same time. Does anyone pay taxes in that state? And with a governor who doesn't actually get paid for his work, although his company does (how messed up is that?), is it any wonder he can't balance the state budget?