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Wednesday, July 09, 2008

California Dems Propose $9.7 Billion Tax Increase

The Democrat-controlled California legislature is proposing a $9.7 billion tax increase to "pay for" its $15 billion budget deficit.

For those of you who live in California, I feel very sorry for you. When the Governator was elected several years ago, he pretended to be a Republican. Now Republicans (and taxpayers) should understand why it is dangerous to elect liberals, whether with an R or D in front of their name. Schwarzenegger is going along with the Democrats' refusal to cut the government budget because of scare tactics such as "we would have to cut schools or essential health care services." What a bunch of garbage. The California budget sucks up every last dollar during the boom times and then refuses to shrink during the slower times.

My prediction is that even if this tax increase passes, the deficit will not disappear, as millionaires will either move to another state or find a way to avoid paying the tax increases, thus reducing the projected increase. And in the process, California will become the next Michigan.

This could be another valuable lesson to all Americans.