Who or what caused this shortage
Was it the politicians or the people?
Was it the democrats, or the republicans
Governor Jerry Brown, D, California must think it was the taxpayers because he wants to increase taxes to reduce the shortage.
The reason or at least part of it is that California receives a lot less in Federal funding than other states.
Are you serious? California is a Socialist's dream!
Amen. It surprises me that anyone would be surprised California is in the hole. It's not one party's fault. It's the entire mindset of something for nothing. We have to be fair. We have to be compassionate. We have to....whatever. As Margaret Thatcher said, "Sooner or later you're going to run out of other peoples's money."
He wants to increase taxes by 0.25 cents on sales (a quarter of a penny only), and income taxes only on those who make $250,000 or more per year - and they're expected to be temporary. I don't see the problem, myself.
There are a variety of reasons for state and federal shortages. Taxes of all types go unpaid or are illegally avoided by individuals, businesses, and groups. Some game the tax system and extract refunds that were never due to them such as through ID theft. Many states often overpay for a variety of things such as office space. There are various cases on state levels where they have some amount of unused office space and this problem is atrociously worse on the federal level.
There are a combination of factors in this and any past overspending will catch up with the over spenders. Raising taxes is always the knee-jerk reaction but some of the aforementioned issues also need to be reviewed in order to keep a shortfall from occurring again in the near future.
Good point. Governor Brown recently passed an executive order that mandates government buildings in CA become LEED certified. He expects it to save a ton of state money in water and energy bills. Coming from a background of water conservation, I believe he's right.
The real estate meltdown and the banking and real estate scams and criminality in general.
This is a good point too. Both the real estate and banking situations have been discussed at length, but what about criminality? We have multiple prisons packed full, for which we pay about $1.5 billion per year (by CA calculations). 18% of those prisoners are there for drug crimes. If half of that was marijuana and the feds were to legalize its use, we could save $135 million per year.
Like everything else, there's no simple explanation and this sorry state didn't happen overnight.
Here are some things that certainly didn't help:
Years of unfunded pension liability combined with early retirement of thousands and thousands of state workers
Lifetime health benefits for state retirees
Unnecessary and redundant state "boards" with highly paid workers with no purpose
A boatload of citizens living here but not paying into the system
Losing businesses to other states where there is less (a lot less) regulatory red tape
A construction industry that tanked in the recession and is only just now very slowly coming back
One of, if not the highest foreclosure rates in the country
BTW, Brown's solution also includes slashing and burning services.
I agree, except for the part about slash and burn by Brown. They always hit the schools and public safety, when they should be hitting the people at the decision level with the six figure salaries, and like money in pensions.
Absolutely. And with overtime and state-paid benes up the wazoo, there are a lot more six-figure (or close to) than you would ever want to know.
I live in the state capital and I am surrounded by the state worker mentality.
There are exceptions, of course. But I have friends at all levels in many different departments and inside the capitol.
It blows my mind with disgust.
California, along with the rest of the states can do something they should of done years ago and that is legalize marijuana. Missing out on a huge tax opportunity.
Someone suggested a while ago that we make every undocumented workers a citizen so they can pay their fair share of taxes...and if they stay fine, if not, good riddance.
With all the celebrities living there, I'm sure they could fix the budget with a single million dollar donation.
The govt is very inefficient at everything it does. I mean, it is not their money. Used to be a great state and now they're taxing the people to death.
The structure of the state govt is wrong and they need a governor with strong backbone to start slashing some services.
The level of taxation in California has forced many individuals and their companies to relocate outside the Peoples Republic Of California. Without this revenue to tax, there will surely be a shortfall. Raising taxes will only enhance the problem.
by Jplanet 10 years ago
If you were worth 1 billion dollars would you donate most of it to charities?
by Scott Belford 6 years ago
... are trying to encourage those who fall in the Medicaid gap they created to move out of their State? Hospitals in those States are reporting increased unpaid (meaning you paid) emergency room visits from this group.
by Alex J. Reissig 8 years ago
Would you support a flat 15% income tax?Would you support a flat 15% income tax in this country? Other than a personal deduction (possibly in the neighborhood of 25k per individual/50k per couple) there would be no deductions.
by safiq ali patel 8 years ago
From January 1st 2013 Taxes in the United States of America go upwards. People in the United States of America will pay higher taxes from this day. What is your opinion of these Tax Rises?
by Scott Belford 5 years ago
In reading Federalist Paper # 36 on Taxation, I found the jewel that speaks to one of the main differences between today's Republicans and Democrats"...; and must naturally tend to make it a fixed point of policy in the national administration to go as far as may be practicable in making the...
by TheSituation 11 years ago
What do you all think about this one? Seems like some good fodder for my fellow hubbers.
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