http://www.latimes.com/news/local/la-me-budget-taxes-20100526,0,7286169,print.storyDemocrats propose tax hikes in response to Schwarzenegger's fiscal planDespite the competing plans, Democrats in both houses agree that the deficit has grown so large — at $19.1 billion it is now roughly 20% of the state's general fund — that any rational plan to close it must include tax increases.
Which is why California in particular, and government in general will
NEVER balance the budget. A man with a hammer, thinks all problems can be solved with a hammer. A politician with the power to
steal tax, will think that all problems can be solved by higher taxes. And exempting politicians from taxes.
"We have to stop thinking we can afford to provide the amount of services that the state's residents expect for less money," said Sen. Gil Cedillo (D- Los Angeles). "That's just not going to happen."
Oh? Look at Greece. The citizens are so used to getting something for nothing that they are rioting because their ride on the gravy train is ending. And what is Greece doing? Aside from spending more than they can pillage and loot from their citizens? Borrowing from other countries to continue providing what they can
NOT afford to provide.
Kevin Eckery, a Sacramento-based GOP political strategist, said all sides are posturing.
"At this point, it's clear everyone's just maneuvering," he said. "We're no more going to eliminate welfare in California than we are going dumpster diving for bottles and cans to pay our bills."
Unfortunately, Kevin Eckery is truth impaired, just like all the politicians in Sacramento (and all other government positions). California bill AB 32, the Global Warming Final Solution Act is causing all businesses to go dumpster diving to pay their bills. AB 32 is penalizing all businesses that don't have a "green" solution. So AB 32 has inspired many businesses and individuals not on welfare to create their own "go green" program. However, their "go green" program, is to "go to greener" pastures. The ones that can afford to, are fleeing from California to a state that believes that people who work should be allowed to keep what they earn. To states that don't believe in being sanctuary states for unemployed criminals.
Unfortunately, once all the businesses and people with money have been driven out of state by the higher fees, taxes, penalties, ... there won't even be any dumpsters to dive into for the bare necessities of life.
On Tuesday, Assembly Speaker John Pérez (D-Los Angeles) tried to frame his plan as the better one for California's beleaguered economy. The governor's proposed cuts, he said, would cost California billions in federal matching money and 430,000 jobs, "further decimating the economy just as we're beginning to recover."
Don't you just love the truth impaired politicians who fell for Barack Hussein Obama's Brainwash America Tour where B.O. told everyone that the economy has recovered. Considering that the truth impaired politicians are willing to admit that we have over 10% unemployment, the true figures are probably closer to double that. Even the government is admitting that most of the jobs that were destroyed, will never come back. So where is the economic recovery that overpaid and under worked government czars and commissars are talking about?
The Assembly plan centers on raiding the state's recycling fund for the next 20 years and going to Wall Street for an $8.7-billion loan. The state would then levy a nearly 10% oil severance tax to help pay off the loan.
The California politicians think that they can borrow billions from Wall Street? Why would anyone buy any of the bonds that California would try to sell? The State of California is winning the national "Race to The Bottom (Bankruptcy)". The bond rating companies are downgrading the bond ratings of State of California bonds. Isn't anyone asking what is happening with the billions that the State of California has already borrowed and is unable to pay back? Isn't anyone asking why the State of California for a short time last year issued IOUs rather than checks?
The Senate Democrats' approach is more straightforward. It would plug roughly a quarter of the state's deficit with tax increases.
The 60% hike on alcohol taxes would bring in $210 million. The vehicle license fee would grow from 1.15% of a vehicle's value to 1.5%. A $220 cut in the dependent-care tax credit would be extended, raising $430 million. A surcharge of 0.25% on personal income taxes, set to expire at the end of 2010, would continue throughout 2011 to bring $1 billion into state coffers.
One thing politicians conveniently ignore, is that as the taxes rise for products, people are less willing to pay the price. Raise the tax on alcohol, and people will either drink less, or start more home brewing. Raise the vehicle license fee, and fewer people will buy vehicles. Raise income taxes to pay out more welfare, and more people will quit working to go on welfare. Or people will flee from California (like Mexicans are fleeing from Mexico) looking for some place that is not as oppressive and abusive.
A MODEST PROPOSAL:
Don't you just love the irrational politicians telling the
slaves citizens what the ration thing to do.
Let me propose another rational plan to balance the budget. Take all the politicians serving in Sacramento, throw them all in prison for the rest of their lives. Tell all future politicians that as long as they pretend that the only solution to California's budget problems are higher taxes, then
slaves citizens only response is to make the punishment fit the crime and throw them in prison for the rest of their lives. If we do this long enough, then eventually we will get politicians who will figure out an alternative to bankrupting all the individuals and businesses in California to solve the problem of California going bankrupt.
Until then, the politicians will continue voting themselves larger office staffs, larger salaries, larger retirement benefits, more junkets around the world, ... and congratulating themselves for a job well done.
