The pumped-up action movie hero and the plainspoken Midwesterner make an odd pair. The Omaha World-Herald labeled a photo of the duo "Twins: The Sequel."

Political pundits are uncertain whether Buffett’s affiliation with Schwarzenegger will ultimately help or hurt the former Mr. Olympia’s gubernatorial bid.

Money managers and economists insist it makes Schwarzenegger the odds-on choice to replace Davis if the governor loses the highly publicized recall vote.

Adding Buffett's name to the ticket provides a "huge" boost to Schwarzenegger's credibility, according to Jeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School.

"Arnold's candidacy is no joke," Siegel said. "Buffett has an eye [for business] that the average politician does not."

California has the highest borrowing costs and the lowest credit rating of any U.S. state.

Opponents of Davis have lambasted his handling of the state's budget and a $38 billion deficit. Buffett said that the condition of California’s economy, and the state's importance to the nation, were reasons he accepted Schwarzenegger’s offer.

"Any economic plan he comes up with will be salable to Wall Street, and that's very important," said Richard Carlson, chairman of Spectrum Economics, a consultancy in Mountain View, Calif. "We're completely reliant on Wall Street right now; we have to borrow enormous sums. They're starting to believe we're never going to get our act together, and there's no reason to lend us money."

Some Republicans do not believe that Buffett’s financial expertise outweighs his leftist political tendencies.

Actual Republicans Speak Out

"Is this the same Warren Buffett who opposed the president's tax plan?" said John Feliz, campaign director for Republican state Sen. Tom McClintock, who is vying for Davis’ spot. "It's a let-them-eat-cake approach. This is a very wealthy person who doesn't understand the problems of a family of four earning $35,000 a year and living in Visalia, California."

Schwarzenegger's appointment of Buffett is a welcomed move, according to K.B. Forbes, a spokesman for Bill Simon, another California gubernatorial candidate.

"Getting a top economic adviser who is a Hillary Clinton donor will not resonate well among Republicans, particularly conservative Republicans," Forbes said. "Hillary Clinton is probably the most despised political figure by the Republican Party."

Tax Me More!

Forbes' prediction came true Friday, when Buffett told the Wall Street Journal that property taxes in California are too low and suggested that Prop. 13 ought to be undone.

Buffett cited the inequity of property taxes he pays on his homes in Omaha, Neb., and Laguna Beach, Calif., and said the California cap on property taxes imposed by Prop. 13 "makes no sense."

His $500,000 house in Omaha has a tax bill of $14,401. His $4 million house in Laguna Beach has a tax bill of $2,264. The taxes on his Omaha home increased $1,920 this year, compared with $23 on the Laguna Beach home, he said.

He failed to mention California's heavy burden of other taxes and fees, including state income tax, fuel taxes and the car registration tax, which Davis just tripled.

For Republicans, Prop. 13 is a sacred benchmark by which most candidates are evaluated by donors, party leaders and many of the party's most loyal voters. Prop. 13 rolled back property taxes and limited their annual increase to 2 percent, passed 25 years ago with 65 percent of the vote.

Schwarzenegger didn't propose overturning Prop. 13. His political strategists mentioned that the actor admires Howard Jarvis and has called the late co-author of Prop. 13 as the original tax terminator.

Regardless, Buffett’s words about Prop. 13 fueled opponents of the front-running Republican and sent officials with Schwarzenegger's campaign scurrying to distance their candidate from the attack. Simon is running ads that say, "Gray Davis tripled our car taxes, and now Arnold Schwarzenegger’s team wants to triple our property taxes, which just goes to show you, don’t send a liberal to do a tax-fighter’s job."

The response to Buffett’s comments has enhanced suspicions among conservatives that Schwarzenegger is not committed to the low-tax, budget-cutting philosophy that has been the mainstay of California's GOP.

"We're flabbergasted someone is so out of touch with California that he would suggest a tripling of the property tax," Feliz said. "We think maybe he needs to fire Warren."

'Providing Cover'

Buffett, who claims he will not serve in a Schwarzenegger administration if the actor is elected, said he was helping a friend with a "very quality mind" who can help solve many of California's problems.

"What he will be doing is assembling other prominent business leaders and economists and setting up a team to address the issues facing California," said Schwarzenegger spokesman Sean Walsh.

Buffett insists that his advisory role to Schwarzenegger’s campaign does not mean he is considering reducing his duties as chairman of Berkshire Hathaway Inc. He said that he did not intend to switch his political affiliation from Democrat to Republican.

"That doesn't make any difference to me," Buffett said. "If you are fighting in a war and someone is providing cover for you, my guess is you don't care whether he is a Republican or a Democrat."

Buffett has extended a political helping hand to Democrat and Republican candidates in the past.

He offered assistance to former Sen. Bob Kerrey, D-Neb., who ran for president in 1992 but lost the nomination to Bill Clinton.

In providing financial support to Hillary Clinton, he said he felt in sync with her pro-abortion views and her support of campaign finance "reform."

He has also donated money to former presidential candidate Bill Bradley and Sen. Bob Graham of Florida during his campaign for the Democrats' 2004 presidential nomination, records of the Federal Election Commission show.

Records indicate that Buffett has also supported two Republicans: liberal Rep. Chris Shays of Connecticut and Rep. Tom Osborne of Nebraska, the former University of Nebraska football coach.

Buffett’s name commands as much respect on Main Street as it does on Wall Street, and that may be able to sway both the electorate and investors on difficult decisions.

"If Mr. Buffett says we really need to bite the bullet, raise taxes and cut spending, it's likely to go over better than if it came from a politician,” said Sung Won Sohn, chief economist for Wells Fargo & Co. who believes that Buffett gives Schwarzenegger credibility.

But ultimately, Schwarzenegger could bite the bullet by losing the special election. California is in the mess it's in because of sky-high taxes. Any candidate whose chief adviser suggests raising taxes even more in an attempt to solve the state’s problems will have made his job more difficult.

Editor’s note: Find out about Warren Buffett’s investing secrets, and his political agenda: Click here now.

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