Posted on 12/16/2008 9:06:08 AM PST by usflagwaver
The California Republican Leaders have presented a detailed plan for dealing with California’s budget deficit. If politics is the art of the possible sometimes requiring compromise, then strong consideration of this plan must be given by all parties. Indeed, the Republicans have crafted a plan by incorporating the savings proposals first offered by the Governor (20% of the proposals), the Democrats (41%) and the Legislative Analyst’s Office (3%). In other words, the plan incorporates the ideas of each of the major players and for that the Republicans are to be commended.
Most importantly, the Republican plan does not raise tax rates and still balances the budget. Once and for all we must stop this reflexive nonsense of believing that raising tax rates automatically results in more tax revenue. To the contrary, it is an economic fact that over time it results in less revenue. Even the liberal lion John Maynard Keynes argued otherwise when he wrote that: "Nor should the argument seem strange that taxation may be so high as to defeat its object, and that, given sufficient time to gather the fruits, a reduction of taxation will run a better chance, than an increase, of balancing the budget. For us to take the opposite view today is to resemble a manufacturer who, running at a loss, decides to raise his price, and when his declining sales increase the loss, wrapping himself in the rectitude of plain arithmetic, decides that prudence requires him to raise the price still more--and who, when at last his account is balanced with naught on both sides, is still found righteously declaring that it would have been the act of a gambler to reduce the price when you were already making a loss."
(Excerpt) Read more at politicalvanguard.com ...
I have a plan. It’s simple. Cut spending.
They could start by not investing taxpayers money in the stock market, buying up bank stocks and what not, like most states. Comprehensive Annual Financial Reports (CAFR) have all the sordid details. It’s really unbelievable what’s going on.
They could start by not committing the taxpayers to funding better pensions for state employees than the taxpayers themselves will receive.
Yeah, but they’ll just raise taxes instead.
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