Wednesday, April 29, 2009

California Shutdown



without Proips 1a-1e California is insolvent and illiquid.

17 comments:

Agent #777 said...

California may be the FIRST insolvent state, but they likely won't be the last!

Jean ValJean said...

without Proips 1a-1e California is insolvent and illiquid.As opposed to what, exactly?

Rob Dawg said...

California is insolvent. That's a real word with real meaning. INSOLVENT. So far California has slipped through with tricks and cash flow. When 1A-1E fail that stops.

Bob said...

The real California Shut Down!

Property Flopper said...

Not a surprise that a-e are failing. The bigger surprise is that the legislature has continued to pin hopes on raising taxes without severely cutting spending.

BOTH are needed. They've got the extra sales tax going, they won't get the rest.

Rob Dawg said...

I thought 1A-1E coud pass with CTA support. I am glad to see that won't likely happen .

Anonymous said...

When will Prop 13 be eliminated so that senior citizens' perpetual robbery from younger adults can be abated somewhat?

You get the feeling that for many oldsters, without their theft from younger generations -- via Prop 13, SocSec, Medicare, etc, most would die within a few months.

Unknown said...

I think they will somehow pass. I have zero faith in how votes get counted though...

w said...

That's not nice Earl.

Lou Minatti said...

It's time for Californians to participate, to be patriotic. (That's from Joe Biden.) Particularly the undertaxed wealthy Californians who haven't paid their fair share. (That's a standard Donk talking point.) Wealthy Californians don't need all of that money. It needs to be confiscated by the state government, which can spend it more effectively.

Pay up, suckers. There are tens of thousands of six-figure bureaucrats depending upon you.

Lou Minatti said...

When will Prop 13 be eliminated so that senior citizens' perpetual robbery from younger adults can be abated somewhat?Prop 13, from where I am, looks insane. I think it is a big contributor to the recurring bubbles that happen worst in CA. But knock yourselves out.

Me personally, the one thing I do have a say in is the mortgage subsidy, which I think should be permanently eliminated. I know that ya'll in bubble areas are addicted to this pork, but the rest of us are paying for your overpriced houses.

TJandTheBear said...

For you out-of-staters...

* CA has the highest income tax and it kicks in earliest
* CA has the highest gas tax
* CA has the highest retail sales tax
* CA has near the highest business taxes

California does NOT have a revenue problem, they have a spending problem. A significant part of the problem *is* structural, though, which is why BK is so damned inviting.

Rob Dawg said...

TJ,
Not quite but close. I think there is a higher income tax in a State with no sales tax but it kicks in at a much higher level. There's also a few states with higher gas taxes but they don't charge sales taxes on gasoline. Those kinds of exceptions. Your point is still a good one.

Out at the peak said...

I voted yes for all except 1C. That one does not sit well with me because it's just more debt.

First thing we need to do is stop all the hand outs/medical care to the illegals. They get better treatment than the US born homeless. Makes no sense.

Second, raise taxes on cigarettes and alcohol even more. I don't care if it's 100% tax, do it.

1A, 1B, 1D, and 1E sound like good ideas too.

Brittanicus said...

Proposition 1A through 1F of the propositions in the upcoming special election consider a NO vote, because it's downright fraud. Remember you are paying for prison cells, education health care and other forced Federal mandates for illegal alien families. Since proposition 187 those people in Sacramento have stuck it to you. Welfare - $1.8 to $3 billion per year is lost due to fraud in the Food Stamps, Medi-Cal and Cal WORKS programs. Remove illegal immigrants and felons from Cal WORKS. More than 42 percent of California’s taxpayer-funded, Medi-Cal births are to illegal immigrant mothers. Every month, $37 million in welfare and food stamps, health care goes to illegal alien families in Los Angeles county. A blockbuster example of fraud is the Earned Income Tax Credit (EITC). Economics writer Ed Rubenstein’s new report, “The Earned Income Tax Credit and Illegal Immigration: A Study in Fraud, Abuse, and Liberal Activism,” The author says immigrants collected about $12 billion from the EITC last year, the majority not paying a cent towards it. Robert Rector of the Heritage Foundation found high school-dropouts-who headed households pay an average of $9,700 a year in taxes but collect an average of $32,138 a year in benefits. All this money in real dollars is procured from unaware taxpayers. Surf NUMBERSUSA for the truth not the propaganda you expect for the open border zealots.

Simoné Gibroné said...

brittanica, those numbers are all garbage that get passed along right wing email chains. There are obviously problems, but you're vastly overstating them.

Even though California's problem is definitely a spending and not revenue one, I would still rather see the balance of taxes be shifted away from more volatile income and sales taxes onto more stable property taxes. It would reduce the incentive/ability of the legislature to raise spending whenever there's an economic boom (making it unsustainable in the next recession and would also increase incentives to work while decreasing incentives to speculate on real estate. That's what Texas does, and I think it works far better than the CA model even if you took out the reckless spending.

Rob Dawg said...

Simoné,
Thanks for beating me to a reply. One of my pet peeves is the oneside "analysis." All tthose "illegals" pay social security with little prospect of ever seeing a penny for but one example.

That said, We pay way too much in taxes. Shifting them around is fine as long as it is at a lower level.