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To: Robert357
If they don't raise taxes, where will they get the money to run the government? The situation is so dire (or will be) that the normal way of postponing tax increases, borrowing, may not even be an option. California is already seen as a credit risk, and it's entirely likely that they couldn't get a loan if they begged.

The other option would be a federal bailout. I'm sure they'll ask for one because they will be able to play the politics of the "cruel Republicans in Washington taking it out on California for supporting Gore."

I suppose you're right about the timing, though. If Davis can somehow limp through the election without raising taxes, he'll try. The question is how bad will the situation be. My guess is that it will be very bad and that next summer we'll be discussing the potential bankruptcy of California (not that I believe that will happen).

15 posted on 11/23/2001 8:04:32 AM PST by Dog Gone
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To: Dog Gone
Actually, I think that there will be very very reluctant tax increases in California. I agree with you, but wanted to make the point that it will be both policially suicidal for the democrats and take them a long time and then only facing judical and state consitutional mandates and the cutting of many social service programs that they can not do.

Again, you are right, they will raise taxes, but it will be over their politically dead bodies. Republicans need to start thinking of how they can capitalize on the coming year of Democratic party agony!

17 posted on 11/23/2001 9:22:27 AM PST by Robert357
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