HolyCoast: Jerry Brown's $50 Billion Tax Scheme Won't Save California

Wednesday, June 13, 2012

Jerry Brown's $50 Billion Tax Scheme Won't Save California

Jon Coupal at Flash Report offers this:
In 2009, politicians in Sacramento enacted the largest tax increase in the state’s history, a $12.8 billion infusion of cash that was supposed to end the state’s fiscal woes. Three years later, the state finds itself nearly $16 billion in the red and now the same politicians want another $50 billion in higher taxes to bail them out. As we have seen, no matter how much they raise our taxes, it is never enough for the free-spending politicians in Sacramento.

The problem with sending more money to Sacramento is that it gives politicians the easy way out. They’re not forced to reform the dysfunctional system as long as taxpayers continue let them off the hook with higher taxes to paper over the problems.

California already has the highest average state tax rate in the nation, and this measure would increase it 3% to 8.4%. Income taxes would jump as much as 32%. These higher income taxes would stay in place for seven years, regardless of whether or not the state’s economy improves, giving politicians a slush fund to continue their reckless spending.

The measure hurts small businesses, the engine that drives our economy and creates jobs, particularly hard. The measure doesn’t go after huge multi-national corporations but instead punishes small Mom-and-Pop businesses that will have to resort to cutting jobs, moving out of state, or simply going out of business.

Proponents of the measure say the money goes to schools. But hidden in the measure is language that allows the politicians to play a shell game with creative math. They move money around so it appears that schools get new money, but not a dime of new revenue is dedicated to schools.
There's more at the link.  The real problem with this is summed up nicely in the second paragraph - sending them more money never solves the problem because the underlying causes are never addressed.  Starve the beast and for it to examine where the state dollars are going and cut out the waste and fraud.  Until that's done, not another dime for Sacramento.

1 comment:

Sam L. said...

" Starve the beast and
it to examine where the state dollars are going and cut out the waste and fraud."

I think you meant "force".

I don't know enough to understand why this hits small(er) businesses more than the biggies, but giving Sacramento the money after you've seen them throw away what you've already "given" them does sound like that classic definition of insanity.