Will California Tax Itself to Prosperity?

Townhall.com ^ | January 9, 2011 | Austin Hill

[Walts Ice Pick]

Well, thank you for the assistance.

Believe me, I am one who has long been critical of Sacramento's budget policies. We need to take on all of the important interests that have become a drag on government. We need to take on the teachers' unions. But, listen up, conservatives - we also need to take on the corrections industry and their union. We simply cannot afford to continue to set world records for per capital incarceration rates. We need to take on all these interests and it isn't going to be pretty. It irritates me when some of my fellow Californians pretend that we need only take on some of these interest groups.

But, nothing, nothing irritates me like some outsider from some Parasitic State with a basket-case economy who claims that California somehow isn't keeping up. I've always liked Haley Barbour, but if there is a theory that says that Mississippi's philosophy of government should produce a more productive citizenry than California's philosophy of government, then there is something wrong with the theory. Rather than criticizing Californians, folks in Parasitic States should be asking themselves what they might do to become more productive like Californians or New Yorkers. That's the reality.

As for marktwain's Arizona, the state's legislature will be opening for business tomorrow. If anyone wants to learn more about horrendous state budget problems, tune into Arizona. But, I will leave those problems for Arizonans to solve.

I have no doubt about California's ability to solve our budget problems. We have no choice. And, we have a ton of resources.

Thanks again.

[marktwain]

“As for marktwain’s Arizona, the state's legislature will be opening for business tomorrow. If anyone wants to learn more about horrendous state budget problems, tune into Arizona. But, I will leave those problems for Arizonans to solve.”

Good luck in California. I am quite sure that California has the resources to solve its problems. I pray that enough clear thinking Californians, such as yourself, work hard enough to ensure that the State comes out all right.

You are quite correct about the budget problems here in Arizona. They were mostly caused by our dear departed former governor Janet Napolitano, though the initiative process here, much like in California, is partly to blame.

Many people thought the housing boom would never end, but like all bubbles, it finally burst.

Again, good luck with California. I think the worst thing that could happen to the State is to be bailed out by the Federal government.

[Carry_Okie]

The idea that some states whose citizens are taxed more by the federal government than others, then must get more federal spending than others is a non argument.

This is a hand-wave, because you want it to be a non-argument. The point is that FReeepers are saying that California is expecting a bail-out. I have never seen such a statement from a California pol. However, I have seen California politicians demand that the Feds pay for spending they mandate of which California bears a disproportionate burden such as medical care, education, and incarceration for illegals, which is a legitimate argument. Were the Feds operating pursuant to their enumerated powers, States would have to make it on their own. California would then be able to wipe out its deficit.

It makes no sense to say that because citizens of one State are taxed more than another, that the federal government then owes that State more than another. Would you make the claim that because a citizen pays more taxes than another, that the citizen should be the recipient of more federal dollars?

Arguing on the basis of your lack of comprehension isn't what I'd call an argument. Citizens of California pay out of State. That money is not available for investment in-State. That has a direct impact upon wealth generation in venue that has historically been of great benefit to other States. Consider the semiconductor and microprocessor industry. Many other states have benefited from California exporting its production. Hence, the imbalance of payments has a direct impact not only on California, but those states that stand to benefit from this intra-national off-shoring.

The State is not being taxed. The citizens are.

The hell it's not. Every unfunded mandate is a tax on a State, which passes on the cost just like taxing a corporation. Yet I don't think you'd argue that corporations are not taxed, as their behavior confirms that many investment decisions are made according to local rates.