Red alert, Red alert! CA govt is losing it... (sales, 2009)

[ryanst530]

Gov: State's deficit has grown to $26.3 billion

And this is what happens when Democrats are in charge of the legislature.

... Some of the comments on the linked page are funny... the last one especially.

What to do now...

[killer2021]

one of the significant reasons that is happening is because of tax hikes. In the long run, just thinking you can raise taxes is not too smart especially in a recession. They figure that if they raise taxes that tax revenue will just increase well that is not the case. What actually happened is that people just stopped spending as much and hence the overall amount of tax dollars actually declined.

Compared to a year ago here is what the tax changes/recession did to OVERALL revenue collected:
sales tax: -50%
Income tax - 40% (layoffs)
corporate tax: -10%

[ryanst530]

Originally Posted by killer2021

one of the significant reasons that is happening is because of tax hikes. In the long run, just thinking you can raise taxes is not too smart especially in a recession. They figure that if they raise taxes that tax revenue will just increase well that is not the case. What actually happened is that people just stopped spending as much and hence the overall amount of tax dollars actually declined.

Compared to a year ago here is what the tax changes/recession did to OVERALL revenue collected:
sales tax: -50%
Income tax - 40% (layoffs)
corporate tax: -10%

Exactly... Raising taxes helped create a government bubble if you will.

Its a painful move, but the government has to be cut back. The democrats running the state's legislature just won't let it happen though... Its quite sad.

[bayarea-girl]

Why does it have to turn into a demo vs repub thing? There is enough blame to go around.

[Havasu]

Originally Posted by bayarea-girl

Why does it have to turn into a demo vs repub thing? There is enough blame to go around.

You are correct about enough blame to go around but the Dems would rather raise taxes and the Repubs would rather spend less. The Taxe increases must stop and the State has to spend less if the State keeps up with the Tax increases there will not be anyone left to pay them.There comes a breaking point and its not to far away

[sav858]

CA needs to change the way its tax revenue is collected, the primary sources are too volatile. Sales tax and income tax can change drastically from year to year and the state relies to heavily on those sources of revenue.

Revenue has fallen b/c of the economy, not b/c of tax hikes. The tax hikes were only recently enacted just a few months ago and this problem was already present before that.

The state and the way its run is fundamentally flawed and its problems go way beyond simple talking points like too much govt and illegals.

[TristramShandy]

Originally Posted by bayarea-girl

Why does it have to turn into a demo vs repub thing? There is enough blame to go around.

Because certain people get all tingly if they can change something into a political bitchfest. Most of them have a crush on Rush Limbaugh.

[booker_one]

Originally Posted by bayarea-girl

Why does it have to turn into a demo vs repub thing? There is enough blame to go around.

because it has been noted that the democrats in california want a tax hike and the republicans are against it. is that hard for you to understand or something?

[ryanst530]

Originally Posted by sav858

CA needs to change the way its tax revenue is collected, the primary sources are too volatile. Sales tax and income tax can change drastically from year to year and the state relies to heavily on those sources of revenue.

Revenue has fallen b/c of the economy, not b/c of tax hikes. The tax hikes were only recently enacted just a few months ago and this problem was already present before that.

The state and the way its run is fundamentally flawed and its problems go way beyond simple talking points like too much govt and illegals.

Yes the government has collapsed partially because of the economy, but any person with half a brain knows that too much expenditures + not enough income = negative cash flow.

We have too much government in California. Too many ridiculous social services, too much money thrown at a poor performing school system, no accountability with any of it. Its a mess. Yes we have too much government. That is California's problem. Democrats are to blame. End of story.

We are the epitome of a democratic run state.

Is this too political? You bet. What about the presidential primary? All we freakin heard about was how Bush was the reason we'll be going into the stone age again and how Obama will save us all...

Give me a freakin break. Yes politics have everything to do with it.

[sav858]

Originally Posted by ryanst530

Yes the government has collapsed partially because of the economy, but any person with half a brain knows that too much expenditures + not enough income = negative cash flow.

We have too much government in California. Too many ridiculous social services, too much money thrown at a poor performing school system, no accountability with any of it. Its a mess. Yes we have too much government. That is California's problem. Democrats are to blame. End of story.

We are the epitome of a democratic run state.

Is this too political? You bet. What about the presidential primary? All we freakin heard about was how Bush was the reason we'll be going into the stone age again and how Obama will save us all...

Give me a freakin break. Yes politics have everything to do with it.

Other states have high taxes and a corrupt bureaucracy but they are still not in as deep sh*t as Ca., i.e. Northeastern states. It's not all about "democrats this, democrats that" no matter what you convince yourself of. And don't sit there and pretend that the VOTERS of all parties have nothing to do with this mess either.

Blaming "too much govt, social programs, etc.." is the same tired cop out simple minded people always like to use whenever things go south b/c its an easy scapegoat and doesn't actually require anyone to think about the REAL fundamental flaws with this state. The problem go far beyond too much govt or social services. But unfortunately few seem to actually take the time to understand what the hell is wrong with this state and instead gripe about social programs, illegals, and bureaucrats b/c its easy.