Posted on 12/02/2008 8:42:02 AM PST by usflagwaver
Not surprisingly, the California budget deficit has reared its ugly head again. Wait. Didn’t we just pass a balanced budget? If so, how could it become unbalanced so quickly? The answer, in large part, is that the deficit is growing because revenues are falling – just like they always do in a weak economic environment. The tax proposals being considered, however, are exactly what California should not do and here’s why. Imagine, if you will, a cart stuck in the mud and moving very slowly. While people are pushing the cart to get it moving faster, no one would think that adding packages to the cart would be the right thing to do. To the contrary, it would probably be wise to remove weight so that the cart is lighter and easier to push. The California economy and the nation’s economy are carts stuck in the mud. The excess weights are regulations and high tax rates. Now is the exact time not to be adding regulations and higher taxes to the economy’s cart because they will slow the economy further by driving up costs and thereby reducing sales and the tax revenues those sales will throw off. Take the car industry for example. Sales are down dramatically – dropping 32% in October alone. Car dealers are slashing prices in hope of boosting sales. Incredibly, some legislators want to raise sales taxes and former Democrat Senate Leader Don Perata, not satisfied with that, also wanted to raise car license fees! In other words, politicians want to raise the cost of buying a car. No rational car dealer would think that raising the price of cars, when sales are down 30%, will result in more car sales or revenue - so why would any government official think that way?
(Excerpt) Read more at politicalvanguard.com ...
Indeed ... Black Friday got it’s name from being the one day of sales that brings the income statement into the black. Do the stores make that happen by raising their prices? Of course not, they discount everything and make it up on volume.
Here’s an idea for California - no services or support without proof of citizenship.
This from a state Senate leader who recently got carjacked in his $50K state-funded Dodge Charger. I kid you not.
Agree however libs NEVER learn!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.