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May 15, 2012

Jerry Brown: California Can Choose Between Either Spending Cuts Or Higher Taxes (and Urges the Public to Please Select "Temporary" Higher Taxes)

California is just a few years ahead of the US in the financial death spiral.

As goes California, so goes America, they say.

Behold, the ultimate fate of the Blue State Model, which Obama is furiously turning into the National Blue Model.

Gov. Jerry Brown released a plan to close California's rapidly growing deficit by switching state offices to a four-day week, slashing welfare benefits and healthcare for the poor and relying on a variety of short-term fixes — all in the hopes that voters will give the state some breathing room by raising taxes in November.

The governor, who unveiled his revised budget proposal in the Capitol on Monday, is facing a nearly $16-billion budget gap, far larger than the $9.2 billion he predicted in January. He warned that the deficit could grow significantly if voters reject his proposed ballot measure to raise the state sales tax and income levies on the wealthy.

That would trigger additional cuts, including reductions in public education equivalent to lopping three weeks off the school year, he said.

"I'm linking these serious budget reductions … with a plea to the voters: Please increase taxes temporarily," Brown said at a morning news conference.

Here's why you can't elect Democrats to run statewide office: They are beholden to the bureaucracy, which is determined to fleece the taxpayer.

To save $400 million, he's negotiating with public labor unions to reduce the state workweek to 38 hours, worked over four days — a 5% cut in payroll costs.

He has to negotiate allowing people to work 20% fewer days per year in exchange for a 5% reduction in income?

Is this that tough a sell? I think most people would be on the fence about it -- 5% less in pay, yes, but then again, 20% less in commuting costs, less expenses during the workweek (no child care costs one day a week), and three days off every week.

This is almost something you'd just agree to without anyone pressuring you to do so.

And a 5% cut in pay is the best he can do? Why not something more reasonable, like 10%? They're overpaid as it is.

He added: "This is the best that I could do."

Oh, I guess that is the best he can do.

And then: Everyone else's taxes go up, to continue supporting government union employees.

Although Obama lies about it -- with the media his coconspirators -- this is exactly the choice America faces. You cannot close the deficit with taxes on the rich -- you will need to hit the middle class, just as California plans to do (through increased sales taxes).

You can have a government that's flush with money or you can have low taxes -- you cannot have both, and the liberals continue to prosper only because they lie about this simple fact (and too many of the public are willing to believe it).

California is two years of America. And both are just a few years ahead of Greece.

Greek depositors withdrew €700 million ($898 million) from local banks Monday, the country’s president said, as he warned that the situation facing Greece’s lenders was very difficult.



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posted by Ace at 06:03 PM

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