California, the most populous U.S. state, is a social trendsetter that is also at the leading edge of local governments failing to come to terms with an economic crisis.
What is really amazing about the fiscal situation in California is how many people simply don’t make the obvious connection of the two observations noted in the above quote.
California already has some of the highest income and sales taxes in the country, it is cognitive dissonance to suggest that more taxes will solve our financial crisis when that has failed miserably as a strategy to date.
The governor’s plan also fails the common sense test by suggesting that attaching an additional $14 billion in tax assessments will result in anything but more economic contraction. Just think about it for a moment, the state is proposing taking an additional $14 billion out of the hands of consumers in the state, their spending will simply not be at the same level because consumers don’t have an extra $14 billion to give the state.
Lastly, the state is now saying that they will be paying their bills with IOUs come February. Taxpayers of this state should respond in kind with a massive civil disobedience campaign, let’s pay our taxes with IOUs to express our displeasure with the political leadership in Sacramento.