Thursday, May 28, 2009

California's fiscal crisis

Everybody has a brilliant idea about how to solve California's budget crisis. Nearly every body's brilliant idea involves higher taxes. Californians are under-taxed, some argue. Proposition 13 is the real culprit, others argue. Nearly everybody ignores the geometric increases in expenditures and the unending increases in state government employees. The state has a budget deficit but is still hiring. Makes sense to some.

Cutting the state payroll is nearly impossible. Employees have unions. Unions have money to spend on elections. Candidates for legislative office need money for their campaigns. Unions provide it. Following their election, legislators are beholden to the unions who financed their campaigns. They will not buck the unions. Unions need more members. They press legislators for more hiring. Legislators comply. Taxpayers pay or the state has a deficit it must find a way to close. Brilliant idea: raise taxes.

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