"This weekend California Gov. Jerry Brown broke the news to his state: What was projected in January to be a $9 billion budget deficit is now $16 billion.
The state refuses to cut spending. The high tax and excessive regulation regime depresses economic activity (unemployment is 11 percent) and thereby lowers revenue. Democrats refuse to cut spending, so they seek tax hikes (bigger than would have been needed if they hadn't kicked the can down the road). And there is some mystery as to why California is sinking further into the red?
The state refuses to cut spending. The high tax and excessive regulation regime depresses economic activity (unemployment is 11 percent) and thereby lowers revenue. Democrats refuse to cut spending, so they seek tax hikes (bigger than would have been needed if they hadn't kicked the can down the road). And there is some mystery as to why California is sinking further into the red?
The parallel to the federal government (and to Greece) is obvious. Mitt Romney is asking if we are better off than we were four years ago. Maybe the right question is: Do we all want to be like California?" [Washington Post]
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