Democratic lawmakers proposed raising taxes on tobacco and oil companies and refused to cut state worker pay as a key budget committee finished its plan Tuesday to solve the state's $24.3 billion deficit.
The new taxes would include:
-- A 9.9 percent tax on companies that extract oil from California, something the governor proposed last December, though he has now taken a hard line against any taxes.
-- An increase from 87 cents to $2.37 on a pack of cigarettes. Other tobacco products would also see an increase.
-- Reversing two corporate tax breaks included in the deal last September that ended the stalemate over the 2008-09 budget.
The taxes are in addition to a $15 increase in the vehicle license fee that lawmakers proposed Monday to keep open 219 state parks that would close under the governor's plan, which the committee revised.
Unreal. The state unemployment rate is in double digits. There are record foreclosures throughout the state (esp. in the south). CA citizens are downsizing their lives to cope with their new economic realities. Yet, the dominant party in the state government cannot bring itself to cut state spending. Strike that. They are always willing to cut spending for public services, first responders, and prisons. But, God forbid state employees experience a cut in their pay (I am assuming a well-deserved downsizing in state employment rolls is simply not worthy of discussion).
CA will lurch from crisis to crisis until the tax-and-spenders are driven from office. But, it's hard to believe that would happen anytime soon. The sad truth is the state's default position is left-liberal. This is partly due to a sympathetic media environment that always trumpets the "Intransigent GOP = Cuts for Kindergartners" story-line. But it is mostly due to the voters themselves, who never fail to support feel-good measures, regardless of their cost, and allow themselves to be rolled by fear stories about empty firehouses, when the real money is going to gold-plated pensions and salaries for state employees.
Until this dynamic is ended. it won't matter what the crisis is: the solution will always be the same.
I have watched the deterioration of California accelerate over the past decade due to the dominance of the public employee unions over the Legislature and governor.
ReplyDeleteThe politicians bought the votes of the public employee unions through generous (and unsustainable) wage and benefit packages which have contributed to California's current crisis. For example, I have two firemen friends in their 50's who have retired and are collecting $10,000 a month pensions plus full health insurance for life.
Heap on top of that the Legislatures obsequious kowtowing to every special interest group that can shuffle a few votes their way and you have a recipe for disaster. Think of Detroit as a microcosm of a greater California.
California is circling the drain and the Democrats in the State House don't have the guts to put in the plug. Their inaction will cause much more pain in the long run.