GivemTheAxe;583164 said:
Sometimes things are not what they appear to be.
Two possible solutions which could relieve the problem are:
1. Remove the Three Strikes Law which puts a heavy burden on the prison system (which currently draws more state funding than higher education).
2. Decriminalize minor drug offenses. Marijuana. Which further adds to the burden and expense of the crinial justice system.
3. Change the tax laws allowing for less than 60% majority for passage. California hit the impasse which is currently facing the US in that a minority of the population can prevent and block efforts by the majority to deal sensibly with deficits and budgets et al. (not that more taxes alone will solve the problem; but they can form part of a balanced approach to solving the problem.)
I knew someone had to come up with the "raise taxes" line.
You do realize that California already has the highest state income taxes, the highest state corporate income taxes and is top 10 in sales taxes?
Even the writer pointed out that the problem was completely due to an unrealistic belief that we could give state employees contracts that would have bankrupted any corporation and the bill would never come due.
California recently tried to raise some taxes by passing a law that would have forced Amazon to collect sales taxes based on the fact that Amazon had affiliate contracts with stores in the state. I believe the estimate was $40 million per year in increased revenue.
Instead, Amazon immediately cut all ties to affiliates in the state. Several of those stores shut their doors or moved out of the state. Others are expecting a drop in revenue and since they were sole proprieterships where the owner declares the profits as income, the lower sales means lower income which means less tax revenue.
The state will LOSE revenue because this tax INCREASE passed.
Any other tax increase will only make the problem worse. Most US corporations are more about service and research than production. Its extremely easy to move an office of accountants and engineers to another state and many have already made it clear that another tax increase will see many corporations shed jobs. Even the type of tech jobs that were once exclusive to Silicon Valley are moving to lower tax states.
Let's not pretend that we can raise taxes without first cutting the union and state employee gravy train and actually fixing services.
After all when a prisoin dentist can get paid over $500,000 in his final year of service by having all of his "unclaimed" sick pay rolled into his annual salary, and that final salary is used to determine his retirement pay, you have a problem that can never be fixed by trying ti get a few more drops of tax revenue blood from the working publics paychecks.