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AM Alert: Ready for the revise {California Budget badly battered by falling revenue}
SacBee: Capitol Alert ^ | 5/11/10 | Torey Van Oot

Posted on 05/11/2010 8:06:20 AM PDT by SmithL

Gov. Arnold Schwarzenegger's updated budget proposal won't be unveiled until Friday, but Assembly Democrats are already responding to the yet-to-be released May revise.

Assembly Speaker John A. Pérez and Assembly Budget Committee Chair Bob Blumenfield are holding a 10 a.m. presser to lay out their expectations and pledge to maintain openness in the budget process. Those promises include bucking the Big 5 meetings and televising committee hearings online.

(Excerpt) Read more at sacbee.com ...


TOPICS: Editorial; Government; Politics/Elections; US: California
KEYWORDS: bankrupt; budgetdeficit; goldenstate
Last year, they bit the bullet and raised taxes. They are really surprised that the tax increase caused revenues to fall, so I'm sure they'll try it again, this year.
1 posted on 05/11/2010 8:06:20 AM PDT by SmithL
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To: SmithL

Of course....what else can they do if they are to stupid to cut spending and start resending some programs!!!


2 posted on 05/11/2010 8:08:49 AM PDT by ontap
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To: SmithL

This year the net shortage will be 60 billion dollars. Next year it will top 70 billion.


3 posted on 05/11/2010 8:10:27 AM PDT by 17th Miss Regt
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To: SmithL

California Democrats are just plain nuts.

Here’s reality.

http://www.freerepublic.com/focus/f-news/2511193/posts

This article shows the resultant spin. Dems, reality is a bitch, and she’s already filed papers to get child (your pie in the sky programs) support.

You have screwed this state into the dirt. Avoidance is impossible any longer. Someone is going to have to use the pooper scooper to clean up behind you.


4 posted on 05/11/2010 8:14:15 AM PDT by DoughtyOne (Excusaholic: MeCain lost to Jr., RINO endorsements are flying, & you live at 2012 Denial Blvd.)
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To: SmithL
Can it really be that nobody in the upper echelons of California's government can understand a simple Bell Curve (the Laffer Curve)?

Allow me to explain in very simple terms:
1. If tax rates were 0%, government would take in $0. (Zero times anything is zero).
2. If taxes were 100%, government would take in $0 (because nobody would work).
3. Any at rate between 0 and 100%, government would take in some amount of money.
4. There is one rate in the middle that would maximize revenues (at the tippy-top of that curve below).

The trick, of course, it to figure out where that revenue-maximizing point is (if, like a good little government minion, you want as much money in our leaders' hands as possible. Let's leave that for another day. We're just trying to explain a simple to the morons in government today, in terms that they can understand and dangling outcomes they desire.)

Since raising taxes decreased revenues last time around, it very clearly indicates that the current tax rate is somewhere to the right of that maximization point. Ergo, to increase revenues, one must decrease tax rates. "This ain't rocket surgery, folks."

Of course, most of the idiots in government have had this explained to them. It is my conjecture that they do not care. They are more interested in total government control than they are in revenue maximization, economic prosperity, or freedom for individuals.

5 posted on 05/11/2010 8:19:44 AM PDT by Teacher317 (It's Islam)
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To: SmithL

Commence annual 2-3 month long circle jerk.


6 posted on 05/11/2010 8:25:03 AM PDT by ScottinSacto (W.W.M.R.D.? - What Would Mitch Rapp Do?)
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To: SmithL
Just make the tax rate 100%.

Even better, 110%.

All money rightfully belongs to the government.

7 posted on 05/11/2010 8:27:58 AM PDT by E. Pluribus Unum (FYBO: Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: SmithL
Gov. Arnold Schwarzenegger's updated budget proposal won't be unveiled until Friday, but Assembly Democrats are already responding to the yet-to-be released May revise.

Many people with common sense are astounded at the incredible stupidity continuously depicted by the Democrats in connection with fiscal policy. It is as though they simply cannot comprehend basic economics, especially the relationship between supply and demand, taxes and revenues.

Unfortunately they cannot just print more money like the Obama Administration. Apparently their solution is to get a bail out from the federal government. Amazing!

8 posted on 05/11/2010 8:29:47 AM PDT by olezip
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To: Teacher317
I am not so sure of the shape of the tax max curve:it seems to me that once the taxes are such that each additional work unit brings in less than half of the "face" or "retail" or "gross" value for the worker ,that worker is foolish to add more work units than are subject to taxing.

I wonder if the curve might not resemble a sawtooth instead,with the slope from the peak descending much more rapidly than the ascending portion.

9 posted on 05/11/2010 8:33:08 AM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a credit card?)
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To: hoosierham; Teacher317
I noticed the same thing.

I heard someone say that the biblical precedent has "peak revenue" at about 20%... Can't recall the exact book though; seems like it's back in the historical part of the OT.

10 posted on 05/11/2010 8:45:32 AM PDT by OKSooner
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To: SmithL

“Assembly committee OK’s higher biz taxes”

“Together, those measures, if enacted, would increase state and local revenues by as much as $10 billion a year.”

Everthing is going to be fine, they found their soultion.

http://www.sacbee.com/static/weblogs/capitolalertlatest/2010/05/assembly-commit.html


11 posted on 05/11/2010 9:05:48 AM PDT by twistedwrench
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To: SmithL

Assembly Democrats have one plan they have used for the last thirty years Spend and Tax fail and repeat is in their blood.


12 posted on 05/11/2010 9:34:02 AM PDT by Vaduz
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To: Teacher317
Of course, most of the idiots in government have had this explained to them. It is my conjecture that they do not care.

I beg to differ. I think it's a matter of understanding, not caring.

Your curve example is common sense. I suspect most FReepers would understand that concept in a flash.

But the poor libs operate on feelings. They will never understand your curve unless you can restate it in feelings, something they can understand.

13 posted on 05/11/2010 10:02:30 AM PDT by upchuck (If you want a picture of the future, imagine a boot stamping on a human face -- forever. "1984")
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To: upchuck

Operate on feelings, and find excuses with lame conspiracy theorizing.


14 posted on 05/11/2010 10:10:06 AM PDT by junta (S.C.U.M. = State Controlled Unreliable Media)
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To: E. Pluribus Unum

You can only tax at 100% once. After that everyone quits working and you get zero..


15 posted on 05/11/2010 3:59:56 PM PDT by goat granny
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To: goat granny
You can only tax at 100% once. After that everyone quits working and you get zero.

You know that and I know that, but Obama doesn't.

16 posted on 05/11/2010 4:01:32 PM PDT by E. Pluribus Unum (FYBO: Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: E. Pluribus Unum
Those liberals will be surprised when all the working folks show up for welfare, food stamps, rent subsidies and no one is working so there is no money...they would then have to shut down all welfare and unnecessary jobs in the government. Then perhaps they will start from scratch and eliminate 99% of regulations and taxes and we can all start working again and the economy would hum right along....

But I quit believing in fairy tales when I was 10...

17 posted on 05/11/2010 4:24:26 PM PDT by goat granny
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