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View Diary: California's Succeeding Despite Antitax Hurdles (105 comments)

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  •  CupofJoe - every major city and county in Calif (3+ / 0-)
    Recommended by:
    freedomalliance, Sparhawk, valion

    will go through a bankruptcy process in the next decade. The cities and counties don't have the revenues, the ability to raise revenues, or sufficient investment assets, to fund their pension and retiree health insurance liabilities. The math just doesn't work.  

    "let's talk about that"

    by VClib on Sat Sep 08, 2012 at 03:41:39 PM PDT

    [ Parent ]

    •  I worked for the city of San Francisco's budget (5+ / 0-)

      office. There is plenty of revenue there, and in other municipalities. The figures you're citing are meaningless, as they cover the pension liabilities over an unreasonably large amount of time. Raising revenue is a crucial part of balancing a state's budget, to ignore that is just ideological.

    •  I doubt it (4+ / 0-)
      Recommended by:
      ybruti, ozsea1, CupofJoe, lonespark

      Really?  Every major city and county in CA will go bankrupt in the next decade?  

      I think California may finally wise up to parts of Prop 13, and it won't come to this.  

      At least I seriously hope so.  Dems getting supermajorities in CA would help.

      •  SPD - I don't see any way that the major (3+ / 0-)
        Recommended by:
        nextstep, Sparhawk, freedomalliance

        cities and counties can meet their pension and employee retirement health benefit obligations. If states could go through bankruptcy California would be at or near the front of the line. We already have income tax rates and sales tax rates that are near the highest in the US. Gov Brown's proposal would give us a top marginal income tax rate that would be nearly 30% higher than the next highest state. I have lived in California for more than 50 years and have been following California politics for more than 40 years. I don't think that Gov Brown's proposal will pass this Nov. However, there is a competing tax proposal that I think may have a better chance, Prop 38.

        "let's talk about that"

        by VClib on Sat Sep 08, 2012 at 09:06:52 PM PDT

        [ Parent ]

        •  Thanks for the pointer to Prop 38 (2+ / 0-)
          Recommended by:
          VClib, CupofJoe

          "No man is rich enough to buy back his past." ~ Oscar Wilde

          by ozsea1 on Sat Sep 08, 2012 at 10:59:28 PM PDT

          [ Parent ]

        •  Ballot initiatives really are part of the problem, (1+ / 0-)
          Recommended by:
          lonespark

          not the solution. Just imagine if the federal gov't had to run popular referendums for every tax change. It's crazy.

          •  CupofJoe - they have been a part of the CA (0+ / 0-)

            political process for more than a century and they aren't going away.

            "let's talk about that"

            by VClib on Sun Sep 09, 2012 at 01:16:15 PM PDT

            [ Parent ]

            •  But Prop 13 may go away. (0+ / 0-)

              It's Prop 13 that really empowers the ballot initiative process.

              •  Cup of Joe - I don't understand your comment (0+ / 0-)

                ''It's Prop 13 that really empowers the ballot initiative process."  

                Prop 13 isn't going away, but in my opinion a very well funded effort could carve off commercial properties from the basic Prop 13 restrictions. However, I don't know who would put up the $20-30 million it would require.

                "let's talk about that"

                by VClib on Sun Sep 09, 2012 at 05:19:29 PM PDT

                [ Parent ]

                •  You need a ballot initiative to raise taxes. (0+ / 0-)
                  •  CupofJoe - there are two on the ballot in Nov (1+ / 0-)
                    Recommended by:
                    freedomalliance

                    Prop 30 is sponsored by Gov Brown, the Dem legislative leadership, and organized labor. It would raise the top marginal rate to 13.5% for family incomes over $250,000, up from the current top rate of 10.5% and raise the sales tax 1/4%. The current top state income tax rate in the US is 11%. I think Prop 30 will not pass.  

                    Prop 38 would raise taxes on everyone except the lowest income earners and the funds would be allocated directly to K-12 education in a manner that does not allow the state to simply reallocate state revenues by substituting the new funds for existing state educational funding. I think that Prop 38 may pass. People like the idea that the new tax revenue will directly add to funds for K12 education.

                    "let's talk about that"

                    by VClib on Sun Sep 09, 2012 at 07:01:13 PM PDT

                    [ Parent ]

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