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Prepare for Demise of California; Liberals Will Get All the Government (and Tax Hikes) They Want
Townhall ^ | Mike Shedlock

Posted on 11/11/2012 5:29:37 PM PST by SeekAndFind

On Tuesday voters in California went the wrong way on three propositions.

  1. Voters approved Proposition 30 "temporarily" increasing the state sales tax and income tax on individuals making over $250,000.
  2. They voted against Proposition 31 that would allow the governor to cut the budget in fiscal emergencies.
  3. They voted against Proposition 32 would prevent unions from making campaign donations via members' dues.

Moreover, and worse yet, Democrats picked up two more votes in the state legislature giving them a supermajority, capable of passing any tax hikes they want.

Those results are so awful I suggest you prepare for the demise of California.

Indeed California's Liberal Supermajority is about to run the state into the ground and taxpayers are going to get all the government they ever wanted.
The main check on Sacramento excess has been a constitutional amendment requiring a two-thirds majority of both houses to raise taxes. Although Republicans have been in the minority for four decades, they could impose a modicum of spending restraint by blocking tax increases. If Democratic leads stick in two races where ballots are still being counted, liberals will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.

The high Democratic turnout in moderate and right-leaning districts helped the party pick up three seats in the senate and four in the assembly.

So now Californians will experience the joys of one-party, union-run progressive governance. Mr. Brown is urging lawmakers to demonstrate frugality and the "prudence of Joseph." As he said the other day, "we've got to make sure over the next few years that we pay our bills, we invest in the right programs, but we don't go on any spending binges." That's what all Governors say. Trouble is, merely paying the state's delinquent bills will require tens of billions in additional revenues if lawmakers don't undertake fiscal reforms.

With no GOP restraint, liberals can now raise taxes to pay for all this. [$200 billion in unfunded liabilities, the California State Teachers' Retirement System in need of $10 billion annually for the next 30 years to amortize its debt, $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds, etc.]

They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring. Then they'll try to make it easier for cities to raise taxes.

The greens want an oil severance tax. Other Democrats want to extend the sales tax to services, supposedly in return for a lower rate, but don't expect any "reform" to be revenue neutral. Look for huge union pay raises and higher pension benefits.

The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence. As a political experiment it all should be instructive, and at least Californians can still escape to Nevada or Idaho.

Law of the Funnel in Action

Big government and absurdly strong unions destroyed Greece and Spain. Expect no less for California.

Many large California corporations that can flee, will flee. Those stuck in California will see massive tax hikes (with many more to come) just so public unions and administrators can collect absurdly high salaries and benefits that most citizens can only dream about.

Please see the Law of the Funnel for a description as to what just happened.

Economists Cut US GDP Forecast, Raise Inflation Forecast


Here is a headline news story that I found interesting for reasons I will explain following: Economists cut U.S. Q4 growth forecasts.

Economists expect the economy to grow at an annual rate of 1.8 percent in the current quarter, down from the previous estimate of 2.2 percent growth, according to the Philadelphia Federal Reserve's fourth-quarter survey of 39 forecasters.

While that left estimates for gross domestic product for the year unchanged at 2.2 percent, growth in 2013 looked modestly weaker with economists forecasting 2 percent, down from 2.1 percent.

Over the next three quarters, growth was seen averaging 2.1 percent, down from earlier expectations of 2.2 percent.

The unemployment rate was forecast to come in lower than expected, averaging 7.9 percent in the fourth quarter from the previous estimate of 8.1 percent. The monthly unemployment rate released by the government was 7.9 percent in October.

Still, unemployment was seen stuck at 7.9 percent in the first quarter of next year, and holding at 7.8 percent in the second and third quarters.

Economists raised their forecasts for inflation this quarter with the headline consumer price index seen averaging 2.3 percent, up from earlier estimates for 2.0 percent. For the year, CPI was expected to average 1.9 percent, up from 1.8 percent.
Given exports were recently revised up and imports revised lowered, I expected economists to think GDP would come in higher. It would have been interesting to see their reasons. Hurricane Sandy perhaps?

I expect the economy to weaken of course (and by far more in 2013 than the economists). Curiously the economists do not seem worried about the alleged fiscal cliff, at least for their GDP estimates.

For more on the fiscal cliff, please see "Saturation Point" for QE Nonsense; Fiscal Cliff Comparisons

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com


TOPICS: Culture/Society; News/Current Events; Politics/Elections; US: California
KEYWORDS: california; proposition30; taxers; taxhikes

1 posted on 11/11/2012 5:29:41 PM PST by SeekAndFind
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To: SeekAndFind

If they could just find a way to get enough of our money, they could solve all our problems.

Now they can.


2 posted on 11/11/2012 5:33:13 PM PST by umgud (No Rats, No Rino's)
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To: SeekAndFind

This is the sort of action that is needed to teach people. Pain, and more pain.

It’s the only way people learn.


3 posted on 11/11/2012 5:33:41 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: SeekAndFind
"They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring.

If I were Texas and the like I would be on the lookout for this to occur. California is already business hostile as it is. They do this, and companies will be looking for other states to move to that treat businesses fairly with the thought of creating jobs and actually keeping them.

And don't think that this will be limited to commercial property. Prop 13 affected personal property, and they could make a bundle (in the DEM's minds) raising all property taxes to current property values. Of course, this will cripple those in retirement and fixed incomes and have owned their homes for quite some time.

4 posted on 11/11/2012 5:35:16 PM PST by CatOwner
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To: SeekAndFind

Watch for calls of a bailout of the People’s Revolutionary Soviet of California.


5 posted on 11/11/2012 5:36:25 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: SeekAndFind

Good, let ‘em go. The faster the better. Just don’t come begging for a bailout.


6 posted on 11/11/2012 5:38:58 PM PST by GP100
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To: SeekAndFind

Prepare for the demise of America.


7 posted on 11/11/2012 5:39:14 PM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: SeekAndFind

Beware Texas, the locusts will be looking for new green pastures to ravish.


8 posted on 11/11/2012 5:39:34 PM PST by MNDude
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To: GP100

RINOs in Washington DC are doing the same as CA Democrats.

http://confoundedinterest.wordpress.com/2012/11/11/sen-corker-optimistic-there-is-a-deal-to-get-beyond-fiscal-cliff-which-is-really-the-fiscal-foothills/


9 posted on 11/11/2012 5:39:47 PM PST by whitedog57
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To: GP100

RE: Just don’t come begging for a bailout.

That will be like GM NOT begging for a bailout.


10 posted on 11/11/2012 5:40:50 PM PST by SeekAndFind
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To: SeekAndFind

You no longer have to wait for an earthquake to send California tumbling into the oceans, the Democrats will do just as well.


11 posted on 11/11/2012 5:43:18 PM PST by From The Deer Stand
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To: All

RE: Voters approved Proposition 30 “temporarily” increasing the state sales tax and income tax on individuals making over $250,000.


How many of us are willing to bet how long it will take before they decide to make “temporarily” permanent?


12 posted on 11/11/2012 5:43:18 PM PST by SeekAndFind
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To: CatOwner

How long b4 silicon valley says enough and gets the hell out of Kalifornia..


13 posted on 11/11/2012 5:44:18 PM PST by scbison
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To: Army Air Corps
Watch for calls of a bailout of the People’s Revolutionary Soviet of California.

Yep, the producers are leaving in droves. So the vultures will feed on the few remaining carcasses until those are picked dry then they'll scream for help.

14 posted on 11/11/2012 5:46:08 PM PST by Kenny (<p)
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To: CatOwner

The ones who are on fixed income and retirement savings have been voting Democrat for years. They are only getting what they wanted.


15 posted on 11/11/2012 5:46:58 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: SeekAndFind
The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition.

BULL CRAP!

They will see no such thing.... they'll just lap up the vomit spewed at them by the State Run Media: "boo-hoo, if only rich white people weren't so stingy and terrible!"

So long, California, it was (kinda) nice knowing you. Guess I'll buy most of my wine from Argentina now!

16 posted on 11/11/2012 5:47:19 PM PST by workerbee (The President of the United States is DOMESTIC ENEMY #1)
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To: scbison
"How long b4 silicon valley says enough and gets the hell out of Kalifornia."

Been happening already. Both defense and tech are getting clobbered in California. If I needed to work another 10+ years in either industry, I would move to another business friendly state.

17 posted on 11/11/2012 5:50:57 PM PST by CatOwner
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To: workerbee

“Guess I’ll buy most of my wine from Argentina now!”
__________________________________________________

While Carlo Rossi is quite plentiful here in the small towns of the Philippines, I stock up on Spanish and South American wines, at about half the cost, when I buy them in a city.
The best part is that they come in 1 ltr paper boxes, so it is quite easy to carry as much as 20 ltrs.
I am sipping Don Garcia (tinto) as I type this.
There are about four brands from SA and Spain.


18 posted on 11/11/2012 6:01:14 PM PST by AlexW
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To: SeekAndFind

A parable for dwellers of Californicate: A man was sitting in a chair and would strike himself in the head with a hammer several times and then stop. A moment later he would do the same thing all over. A Texan stopped and asked the man why he was hitting himself in the head with a hammer. The man answered, “I like the way it feels when I stop”.


19 posted on 11/11/2012 6:14:25 PM PST by RetiredTexasVet (The law of unintended consequences is an unforgiving and vindictive b!tch!)
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To: Jonty30
This is the sort of action that is needed to teach people. Pain, and more pain.

Like the way people in Detroit, Philadelphia, Chicago learned and rose up and voted out the Democrats.......

Sorry but if they haven't learned by now they will never learn. I guarantee, we will be hearing about how bad Arnold & Pete Wilson and even Reagan ruined California so bad it's going to take more than 4 years to undo all the damage they did.

20 posted on 11/11/2012 6:25:11 PM PST by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: SeekAndFind

I could roll up shop, lay off my two employees as I have enough money put away because I’m not a lazy ass sucker like all those that voted for Obama.

Oh and the rich SOB’s that I know voted for Obama, which happen to be my main clients, I’m going to stick it to them big time. Hey, my employee’s deserve 3 weeks paid vacation, holiday pay, plus for the new Muslim holidays too, sick time, personal days off so I’m laying that burden squarely on them. SNICKER!


21 posted on 11/11/2012 6:26:30 PM PST by 23 Everest (When seconds count. The police are just 23 minutes away. 831 Bonnie)
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To: EveningStar

ping


22 posted on 11/11/2012 6:26:49 PM PST by Loud Mime (Conservatives refused to unite; now we pay the price!)
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To: SeekAndFind

Good, should be fun to watch.

Dems in Maryland are unchallenged too but lots of Fed $$$ hides the problems.


23 posted on 11/11/2012 6:42:10 PM PST by sickoflibs (How long before cry-Bohner caves to O again? They took the House for what?)
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To: abigail2; AgThorn; al baby; BAW; bboop; BenLurkin; Bob J; Bon of Babble; Brad's Gramma; ...
SoCal Ping!

Image and video hosting by TinyPic

Attention Southern Californians

Image and video hosting by TinyPic

Please ping me with any Southern California related articles. Thank you!

If you want on or off this ping list, please FReepmail me.

24 posted on 11/11/2012 6:46:03 PM PST by EveningStar
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To: SeekAndFind

The CA Republican Assembly and State Senate might as well not show up if the Dems have a supermajority!


25 posted on 11/11/2012 7:10:03 PM PST by getarope (Time for the repubs to grow some balls and STOP the Kenyan in his tracks NOW!)
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To: SeekAndFind

I wish Tom McClintock had run against Governor Moonbeam instead of RINO Whitman!


26 posted on 11/11/2012 7:11:57 PM PST by getarope (Time for the repubs to grow some balls and STOP the Kenyan in his tracks NOW!)
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To: getarope

We had a problem with that in Indiana. The Dems in the Indiana House would go to a motel in Illinois so the legislature couldn’t pass any laws.

It was a great campaign issue, now we have Republican supermajorities in both House and Senate.


27 posted on 11/11/2012 7:15:25 PM PST by nascarnation (Baraq's bankruptcy: 2016)
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To: SeekAndFind

California’s demise, thread #75,921, which started about 10 years ago.


28 posted on 11/11/2012 7:21:38 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: AlexW

I’m fascinated that you’re living in the Philippines. Are you retired? That is my native land. I was born there 50 years ago, left when I was 10 years old, and never been back even for a visit. I never thought I’d want to go back to live there, but when my husband and I retire, though still a long shot, I’m starting to be open to the possibility. I love my adopted country which I became a citizen of 30 years ago(The USA), but I honestly don’t recognize 50% of it anymore. My husband is not Filipino so it would be totally new for him, but he’s an Air Force vet who spent a few years in Guam and I told him it’s similar to that! :)


29 posted on 11/11/2012 7:41:00 PM PST by mom3boys (I want to Go Galt.)
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To: SeekAndFind

As I recall, Californians routinely vote down sales tax and other tax hikes. Something smells fishy about the vote.


30 posted on 11/11/2012 8:03:14 PM PST by Best and Brightest
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To: SeekAndFind

this is great news.

boycott California products

you don’t need a new cell phone every year


31 posted on 11/11/2012 8:51:01 PM PST by RockyTx
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To: scbison

 

“How long b4 silicon valley says enough and gets the hell out of Kalifornia..”

 

A very long time. They are rabid leftist from the top to the bottom.  Their big income now is like having some extra pocket money to spend at fancy places.  They will wake up only, when their wealth is about to be taxed at a high rate.  Socialism doesn’t like wealth accumulation in private hands, so the confiscation time will arrive.  

32 posted on 11/11/2012 9:36:46 PM PST by OneHun
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To: SeekAndFind
How many of us are willing to bet how long it will take before they decide to make “temporarily” permanent?

How many of us are wiling to bet that $250,000 will be LOWERED soon to $100,000, then $50,000...

33 posted on 11/11/2012 9:47:33 PM PST by Bon of Babble (The Road to Ruin is Always Kept in Good Repair)
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To: Jonty30

 

 

“The ones who are on fixed income and retirement savings have been voting Democrat for years. They are only getting what they wanted.”

 

A good number of them are retired unionistas.  They are already thinking about to sell their properties and move to a less expensive state.  Their mentality will not change, but they might end up in your neighborhood and vote the same way (Rat) as before.  Greet them accordingly! 

 

 

34 posted on 11/11/2012 9:56:04 PM PST by OneHun
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To: Best and Brightest

Silly. It was for THE CHILDREN. Although every dollar will go to fund teacher pensions .....


35 posted on 11/12/2012 2:30:31 AM PST by Kozak (The means of defence again.t foreign danger, have been always the instruments of tyranny at home JM)
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To: RockyTx

RE: you don’t need a new cell phone every year

This woman probably thinks she’ll get one every year for free.

http://www.youtube.com/watch?v=tpAOwJvTOio


36 posted on 11/12/2012 4:25:38 AM PST by SeekAndFind
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To: RockyTx
RE: you don’t need a new cell phone every year

She thinks she'll get one for free....

37 posted on 11/12/2012 4:27:12 AM PST by SeekAndFind
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To: SeekAndFind

Uh, she not in CA...That’s an Ohio Obama supporter...lol


38 posted on 11/12/2012 9:41:30 AM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: SeekAndFind

Mass. passed a temporary tax increase in 1989. Still going.


39 posted on 11/14/2012 1:41:07 PM PST by outpostinmass2
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