[quote author="skek" date=1235016866]At what point can we no longer raise taxes? We already have the highest state income tax in the nation (as well as other tax burdens), and it is steeply progressive. As has been pointed out ad nauseum, in the last decade, California spending has far, far outpaced inflation, CPI and tax revenues -- all of which have increased by healthy amounts. This is a spending problem. Period. If we just paper over this deficit with borrowing and tax hikes, what happens next year when spending is allowed to grow unchecked and we face another budget deficit? Or the year after? Or the year after that? Do we just raise taxes again? How will we pay back the debt our insolvent, credit-risky state is proposing to borrow today? Raise taxes in the future? We can not raise taxes indefinitely, not when doing so fails to fix the underlying problem. Kudos to the Republicans for not kicking this can down the road any further.
Raising taxes is a simplistic response to fiscal irresponsibility. It is generally politically feasible because a tax increase can always be sold by pointing to someone "else" who will have to pay -- you know, those evil millionaires who aren't paying their fair share, or those sinister companies who have the nerve to seek profits! Well, guess what, California is running out of someone else to pay. Now we all get to pay, and pay dearly. The California GOP has drawn a line in the sand. Some folks might call that irresponsible, fanatical or extremist. I call it about time. We can't keep addressing long term systemic failures in the California budget by raising taxes and borrowing. It is economic suicide (if we aren't already dead and just don't know it yet).
Something has to give. That's what I am referring to when I say "start over." <strong>We need to redesign how public schools are funded. We need to redesign how prisons are operated.</strong> We need to redesign what social services the state will provide and to whom. We need to redesign how business, tourism and commerce are stimulated in the state. And we need to get rid of the bullshit partisan district maps that ensure 95% of our elected officials come from safe, non-competitive districts. It drives candidates to the extreme, not the center.
If in the process of redesigning how the state of California operates, we need to reevaluate how taxes are raised and find ways to stabilize the tax base, I'm fine with that. But the overall tax burden must not go any higher. It is already too high.
Wishful thinking, I know. But there it is.</blockquote>
Very well said Skek.
I would also argue that we need to look at the way public schools are operated, not just funded. The idea of keeping kids in school until they are 18 was largely done to appease unions. By reducing the supply of labor, higher rates can be commanded. This helps justify (and increase) union dues.
We need to look at preparing our kids for their future. You need only compare the results of standardized tests from different countries to realize that we do a poor job of that.
