By Bruce Sessions
It was by an overwhelming margin that voters said they wanted change.
With the new state legislature sworn in and seated, the search for a solution to the states massive budget deficit will continue. Therell be some fresh brains in the mix what with the newly elected rookies (mostly Democrats) taking their seats.
While many of the legislators are new, the problem is still the same problem it was before the election; the states outgo is far more than the states income. The solutions being bandied about are the same, too. Cut spending, or raise taxes; or both!
The Republican governor and the Democrats want to raise taxes. They seem willing to make some token spending cuts, but leave in place some forty boards and commissions thatre used to offer plum jobs to termed out Democrats. (See termed-out Senator Sheila Kuehls plum appointment to a do-nothing commission paying her $136,000.)
With Californias economy in the tank, raising taxes seems to be the best solution (for Democrats.) The governor wants an increase in the sales tax, Democrats want to increase the income tax, the car tax three-fold, along with new taxes for services like, veterinary trips, landscaping, lawyer services, plumbing services, a glass of beer, and just about every other service they can dream up that isnt already taxed.
According to Tyler Cowen, professor of economics at George Mason University, during the depression, both Presidents Hoover and Roosevelt increased government spending and increased income taxes, excise taxes, inheritance taxes, corporate income taxes, holding company taxes and excess profits taxes. When all of these new taxes were taken into account, New Deal fiscal policy DELAYED the recovery from the depression.
So, today in Britain, a plan is in the works to CUT taxes to boost the economy.while in California, the talk continues to be INCREASING taxes. Both governments cant be right. So, which path to choose? Which path would YOU choose?