Will A California State Budget Meltdown Affect The Entire National Economy?

Didn’t California simply shorten a fiscal year once in the 1970s? That took care of the problem…

Oh, I see. You mean this tax.

It was repealed in 1902 and 1924. It was made permanent in 1990.

Which I guess would make it the Gulf War I Tax, but I suppose that would be too mundane and honest a label for your tastes…?

Nice posts all around.

But I was really hoping for some sort of debate whether California’s budget problems would impact upon the national economy. Or for that matter, with a number of states having budget problems occurring roughly within a short time frame (How many states had to make budget decisions 30 June / 01 July?) that their combined effects might cause significant problems with the national recovery?

Since California has such a large budget problem, and a huge economy in its own right, would this be enough to affect the national economy? Or is it similar to the dieout of frogs - an environmental sign something greater is amiss, and California is a significant symptom (of something greater) and not a significant trigger?

If you ask a California criminal–I mean elected official–then the California crisis will destroy the USA unless the federal government pumps billions of dollars into California right now. If you ask an Indiana criminal–I mean elected official–then it’s Indiana’s crisis that will bring about the downfall of the USA.

Squeegee,

That’s all nice and all, but when have YOU ever seen a tax repealed. I for one have never seen a single tax repealed, even oned supposed to be temporary. I can say with confidence that any new tax imposed will not be going away. I’m sure there are rare exceptions but, effectively, a new tax is permanent.

Also, if the Spanish American War tax was repelaed in 1902, why did it need to be repealed in 1924? Why does it exist now? Changing the name of something does not ‘it new’ make.

Many people seem to be quick to want to raise taxes, especially on other people. If California government spending exceeded inflation plus population growth then they need to cut the spending that was done while doing this. Go back to a budget several years ago to find out what programs were implemented with this overspending and cut them if no other agreement can be reached. The money for those programs implemented with these funds no longer exists so bye bye!

Well, what is the horrible, unspeakable thing Davis has done since his re-election that would warrant a recall effort? I can’t think of anything, short of (1) making Simon look like a buffoon, or (2) occupying a seat that the Republicans covet.

Two main questions:

1: From an arms length perspective are CA state income and property taxes less or more than those in other west coast states pay on average?

2: Is the CA state goverment known for being especially bloated and inefficient relative to other states in the region?

Yes, I have. In my town just recently, a hotel and entertainment tax was repealed because it was seen as counter productive.

Then you’re not paying attention. I’ve given you hundreds of examples of taxes that have been repealed.

You’ve never heard of a “sunset provision”?

I think you listen to too much talk-radio.

Whatever. The current tax was signed into law by George HW Bush in 1990. Just because you insist it’s the same tax doesn’t make it true.

Squeegee,

Let me be clearer.

Of the taxes I pay, not once has one ever gone away. ‘Temporary’ taxes with sunset provisions are still in effect after the sunset and I am still paying them.

I care not about places like Timbuctantoweenie, Hicksville that had a tax repealed. I’m sure there are rare exceptions but I PERSONALLY have not experienced them.

I don’t listen to talk radio. Way to try to marginalize and generalize. I am just someone who thinks there should be limits on government spending. Right now too many think they can spend spend spend and when the bill comes do then raise taxes (on other people of course)