I don't know why
You call some place Paradise
Kiss it Goodbye
If you are not familiar with the lyrics above it is the chorus for the song The Last Resort by the Eagles. The song is one of many on the Hotel California album speaking to life in the not so golden state. Of course, the album is over 30 years old now and seems so prophetic when reading about the ails of a once great state ruined by "progressive" politics...........
The Democrats who control the Legislature have fired their opening salvo against Gov. Arnold Schwarzenegger's spending blueprint, which proposed eliminating California's welfare program and cutting deeply into other state services, by proposing that the state rely instead on billions of dollars in new taxes to balance the budget.
The Assembly's Democrats detailed a plan Tuesday that would tax oil companies and borrow billions from the nickel-and-dime deposits that consumers make on recyclable bottles and cans. Tax breaks for businesses that are scheduled to take effect soon would be delayed under the plan.
A day earlier, Democrats in the Senate had begun debating a nearly $5-billion tax plan that would delay the same corporate tax breaks and extend both a hike in personal income taxes and a reduced dependent-care credit that are set to expire in December. Vehicle license fees would rise by $1.2 billion. Taxes on alcohol would increase 60%.
Did it ever occur to anyone in Sacramento that all these tax increase just might push business and residents out of the state; thus resulting in even lower revenues to the state?
Punitive taxes to drive people away?
Now that's "progressive"!
More......
2 comments:
The left never DYNAMICALLY scores the effect of tax rate increase. They always score STATICALLY. This is why, when they need more money they very quickly conclude tax rates need to be increased. They assume that to increase revenue by a given percent you just increase the tax rate by the corresponding percent. This is simply false. I can prove it right here. Some countries charge over 50% tax rate. Those countries cannot double revenue by doubling rates because it's mathematically impossible to charge over 100% tax. (although I'm sure if it was possible, demorats would try).
That's why I go crazy when everyone concludes that to pay off the deficit taxes have to go up. Not because I know I will be paying more, but because that is one sure way to make the deficit even worse like what you see in CA.
The only way to pay the deficit is to hold spending and allow a growing economy to fund higher tax revenues. That's it. The fact that Harvard graduates keep getting pumped out of that school and don't get this makes me question their intelligence and also question why our government is made up of alums from that school.
This what's amazing to me.
Businesses don't have the luxury of simply passing on price increases when things get tough.
Most often they have to cut expenses to make things work. A concept that seems to allude government officials.
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