I'll sum up Cali for you:
Recession triggered the crisis but did not cause it. California relies heavily on income taxes, especially those paid by the top 1% of earners. These veer up and down with the markets. But instead of saving money in boom years, the state locks in higher spending on public services and embarks on projects that need long-term investment.
Mr Schwarzenegger’s solution, which he will describe in detail later this week, combines swingeing spending cuts (even to normally inviolable schools) and equally swingeing tax increases.
So debate if you will, but Cahl-ee-for-nyah is fubared. Good luck Arny!
"by using $50 million in reserves this year and $408 million next year."
ReplyDeleteThat is awesome. I'm glad at least one state had the foresight to save some goddamn money. Oregon sent income tax refund checks in the mail last year because they had more money than they needed. Six months later, they were talking about not having enough money. Jackholes.
To be fair, you can criticize Arny for raising taxes, but even Georgia is doing the same with property tax and "he wants a fee on hospitals and health insurance plans".
I'm not saying Georgians will be without the pain of taxes and as you noted in your previous comments: its a recession, we are all suffering.
ReplyDeleteBut the article from the Economist makes the point that the high income taxes in California are partially to blame for the budget crisis. NYC is facing the same problem.
I'm not really criticizing Arny as much as I am California political and fiscal decisions of which the Governator is a part of.
Georgia may be eliminating tax breaks, but I heard Sonny Perdue's state-of-the-state address and he never mentioned raising taxes as the solution to this problem. In fact, quite the opposite, he proposed billions in infrastructure spending to create jobs and attract business.
ReplyDelete"In fact, quite the opposite, he proposed billions in infrastructure spending to create jobs and attract business."
ReplyDeleteAnd that, I agree with. Jay, not so much.
What's state income tax?
ReplyDeleteDon't you guys just have big ass hotels that tourists drop money in?
Also, Georgia = Atlanta + a couple colleges and a big whites-only country club. California, on it's own, is like the 8th largest economy in the world. Not that that means shit about shit. I'm just sayin.
ReplyDelete>> is like the 8th largest economy in the world
ReplyDeleteLead by an Austrian action hero (twice elected)
Not that that means shit about shit though
lulz. touche, sir.
ReplyDelete