California's Prop 30: Rewarding Irresponsible Politicians With Tax Cash
The amazing thing is, citizens don't seem to get the connection between politicians voting in bigger and bigger government that the state can't pay for and the decline in quality of life. From the WSJ:
The most important single vote in America next Tuesday, after the Presidential race, is Governor Jerry Brown's attempt to stick Californians with another giant tax increase. Mr. Brown and his labor allies say Proposition 30 will fix the state's budget deficit and ward off education cuts. But the real choice before voters is whether to issue Sacramento's incorrigible spendthrifts another blank check.Two years ago the Governor staged a bow to democracy by pledging that he wouldn't raise taxes without a vote of the people. The truth is he couldn't pick off enough Republicans in the legislature for a tax increase without delivering significant pension reforms, which government unions won't allow. Thus the last-ditch resort to the ballot box.
The Brown-union plan includes a "millionaire's tax" that kicks in at $250,000, three new income brackets for high earners and an increase in the top rate to 13.3% from 10.3% for individuals and many small business owners making more than $1 million. This would give California the highest income tax in the country, leaping over Hawaii's 11%. Oh, and by the way, these higher rates would be retroactive to this year.
...The only way California can escape its recurring fiscal Frankenstorms is through reform and economic growth. The former would stimulate the latter while the Governor's tax initiative would squelch both. Raising taxes on small business owners when one in five Californians is out of work or employed part-time because he can't find a full-time job is the definition of insanity.
Once more cash starts flowing to Sacramento, taxpayers can forget about budget and regulatory reforms that the Governor has suggested are on his agenda after the election. The only thing Democrats in Sacramento have planned after November is more spending.
And although this is specifically a California story this article is talking about, this is the story in most states these days.
"We don't have a trillion-dollar debt because we haven't taxed enough; we have a trillion-dollar debt because we spend too much." --Ronald Reagan, to National Association of Realtors, March, 1982







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