Friday, February 13, 2009

The best we can expect

The LAT argues this morning in editorials that the rumored California budget "fix" is the best we can expect and, though it isn't what they would prefer, the federal "stimulus" bill ought to be approved and signed into law. On the front page, the LAT says that California will realize $26 billion from the federal "stimulus" but, in the piece that follows, says that $26 billion will not help solve California's budget crisis.

The California budget "fix" increases the tax burden of a state that was among the highest-taxed states before the "fix." Raising taxes doesn't solve anything because expenditures will continue to grow, exceeding whatever new tax revenue is raised. California's government continues to grow because it continues to hire. There seldom are terminations because the government workers' unions won't permit them. Unions provide the money to elect legislators who do their bidding. The unions effectively control California's government.

The $26 billion from the federal "stimulus" won't help to solve California's budget crisis because it will be spent as fast as the new tax revenue is spent. One of the justifications for the federal "stimulus" was to help the states crawl out of their budget crises but now it appears that at least $26 billion of that "stimulus" will have no effect.

It seems like a shell game that taxpayers can never win.

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