California to Feds: Drop Dead

Washington Post ^ | June 21, 2009 | Joe Matthews

[reaganaut1]

Sure, California's economy has seen better days, our budget is a mess, and we've been wondering whether the federal government might help us out with our cash flow. But the barbs sent our way by politicians and commentators in Washington are getting to be a bit much.

Democrats suggest that we're all selfish folks who refuse to tax ourselves enough to support our spending. (They should talk.) Republicans say the entire state is addicted to over-spending. (They should talk, too -- see the rising deficits of the Bush era.) Such commentary has been offered with heaping plates of schadenfreude, as if our devotion to surf, sunshine, personal fitness and Kobe Bryant meant that we deserve damnation. Writers at the Atlantic have admitted to enjoying California's troubles and urged us to declare bankruptcy even though, as a legal matter, states can't seek bankruptcy protection.

Worst of all, President Obama and senior aides have served up a side dish of condescension as they advise California to "make some very difficult choices." When you consider the source -- an administration that has deferred its own very difficult budget choices -- such advice merits immediate induction into the Chutzpah Hall of Fame.

If you want to bash California, we're going to bash back. California would be better off without the federal government.

...

And where would the federal government be without California? In big trouble. For one thing, the United States would lose the substantial subsidy from our state's taxpayers. That's right, we subsidize you. California gets back about 80 cents for every dollar we pay in federal taxes.

[reaganaut1]

Yes, states such as California with high costs of living and income inequality pay a lot of income tax to the Federal government, because the income tax is so "progressive". The Dems love the "progressive" income tax and always want to raise the rates on the higher brackets. Maybe California should return to voting Republican!

[raybbr]

And where would the federal government be without California? In big trouble.

Blackmail. I hope it doesn't work.

BTW, there are states that get a lot LESS than 80 cents on the dollar.

This brings to a point I would like to see made. Does ANYONE get 100 cents on the dollar that's been washed through the govt. washing machine called "bureaucracy"? It's impossible to get a 100% return on a tax dollar. I would bet that about 40% of it is lost in the ether of bureaucracy.

[randita]

As a columnist for Bloomberg News recently noted, if California had the same deficit relative to its GDP as the federal government, we would have a shortfall of about $230 billion. The state's current (and massive) deficit is $24 billion.

He has a point, but it doesn't justify a bailout.

[dirtboy]

When California stops sending oodles of liberals to Congress, we’ll talk.

[hoosier hick]

I see multiple references to “California sends more to Washington than it gets back.” I find that very hard to believe. Between the National Parks, military bases, and Medicaid spending on illegals, and Homeland Security spending, I think it should be higher than 80 cents on the dollar...

hh

[hoosier hick]

Also, since the state is REQUIRED to have a balanced budget, any structural deficit has a negative effect on their credit rating. The Feds have a better rating because of their (nearly) unlimited ability to borrow. That’s not a good thing...

hh

[Old Retired Army Guy]

California’s biggest problems are the Environmental Lobby which has caused repressive anti business legislation and prevented any type of oil exploration which could be a source of a great revenue stream and the Public Employee Unions which have wrecked the education system and cost the taxpayers huge sums of wasted revenue.

[Joe Boucher]

Yeah, that’s gonna happen.

[Achilles Heel]

The CA politicians think raising taxes to a high of 10% will help-while not eliminating welfare spending, and easing strict environmental rulings-it won’t erase the problems, though. I just don’t see how the state can pull through without a change in spending.

[Bernard]

California could balance the state budget by using royalties on the oil drilled from off-shore facilities, but it would have to actually choose to do that. They would also have to not spend the additional revenues, which would require a sense of responsibility higher tham that of wild animals in the woods.

Since California chooses to not drill for oil, chooses to provide benefits to illegal aliens, and chooses to not balance it's own budget, residents of California should be happy that they have the right to choose.

[hinckley buzzard]

Nothing like a healthy dose of California whine.

[Mouton]

California is becoming like the North East cities of the 60’s and 70’s...the residue of flight by whites and income producers. With a decreased tax base, the schools have deteriorated to a level far below one that replenishes the knowledge and innovation base that is leaving in droves and at the same time there is an influx of marginally to completely uneducated immigrants taking their place. This is a death spiral that can only be cured by a complete change of Federal and State policies so far across the board to make such changes impossible IMO. The rest of the US can send funds to keep Ca afloat but that is just a stop gap measure that will not turn this around. Like a heroin addict on methadone, Ca has become dependent on a stipend of money to keep it alive.

[GOPJ]

If you want to bash California...

Works for me.

[sportutegrl]

http://blogs.dailymail.com/donsurber/2009/06/19/dontbecomewva/

For every dollar it pays in taxes, West Virginia receives $1.76 in benefits.

[Iron Munro]

California will get a huge Federal bailout as soon as they elect a democrat governor. (A real one, not a RINO wannabe)

[William Tell]

If the author of the article is correct, that Kalifornia is superior fiscally to the U.S. government and the governments of many nations, then that is a sad state of affairs for the world. But it in no way justifies the behavior of Kalifornia.

Also, the claim that a state cannot declare bankruptcy is a useless distinction. Individuals and corporations who declare bankruptcy are unable to pay their creditors. To balance creditor interests and protect the assests of the bankrupt, the courts make the decisions as to what will happen to the assets and who will get paid.

Without perhaps using the word "bankruptcy", that is exactly what is in store for Kalifornia.

[chris_bdba]

Here is a chart from 2005 about which sttes get what back from federal dollars:
http://www.nemw.org/taxburd.htm

Some states make out pretty well while others don’t.

[calcowgirl]

Californians understand that the budget crisis is our responsibility. But our problem isn't a lack of wealth -- it's our terrible state constitution,
which requires a two-thirds vote to pass a budget or raise taxes.

Bull puckey.