Posted on 05/07/2010 12:31:55 PM PDT by SmithL
When income tax revenues fell billions of dollars short of expectations last month, modest gains in other revenues were wiped out, leaving the state running well behind, Controller John Chiang reported Friday.
"Four months of positive receipts were erased in the last 10 days of April," said Chiang. "Because a surge in revenues has not come, the governor and Legislature need to move quickly and forge the consensus needed for a balanced budget. Any delay will only limit their options and expose already struggling Californians to greater harm."
(Excerpt) Read more at sacbee.com ...
When businesses have to pay higher taxes, they can’t pay more to employees. When employees don’t get more pay, they can’t spend more money. When employees can’t spend more money, businesses make less money and therefore will pay less in taxes because they have less in income.
You’d think it was rocket science the way government and liberals cannot grasp this concept that can be explained in one paragraph.
I’ve read that several times at this forum. I do not doubt that it is true.
However, when the state cannot pay its bills and at the same time cannot go bankrupt . . . then what?
Start selling assets.
Start laying off employee's.
Start cutting payroll.
It's simple when you have to pay for stuff yourself.
9.9 is not 10
Right, and if they do not do what common sense would dictate?
They hit the rock and Arnold ordered full steam ahead.
Jails
All unions
Illegals
Corrupt polticians
Global Warming policies
Regulation
Cutting off water
It’s ‘ovah’
Dutifully corrected.
That is the $64K question. No one really knows, because it's never come to that, yet. There are competing legal schools of thought. One camp (the camp I'm in) argues that since states are sovereign entities, they could just default on their debt.
Anther school of thought, which I believe to be a stretch, describes some kind of federal receivership. But, states, like the federal government are sovereign entities. There is no constitutional provision for one sovereign (the feds in this instance) to take control of another sovereign (the state).
A GM style bailout, and probably the third school of thought, wouldn't be out of the question, either; Some kind of pre-arranged loan where the feds dictate certain terms to the state, leaving the state the option to acquiesce, or pass.
It really is uncharted water, legally. What would actually happen is anyone's guess.
Well...
Since the left loves to tell us how much money California contributes to the federal Government, I’d suggest succession.
Let California become the liberal Utopiaa they want it to be, and see how fast we can build border fences to control the illegal immigration when they figure out what a “liberal Utopia” really is.
A friend of mine has observed that the tax and spend approach of the California Democrats should be called the “Grecian Formula”.
What!
That would include unions, pensioners, welfare,
GeronL you may just be a candidate for re-education camp.
California was short $97 per man, woman and child in April. Think about that. With all of the spending in the California budget ($87,204,000,000 or $2295 per man, woman and child), they are still overspending.
Making this worse, the Federal Budget is $3,938,000,000,000 or $12,703 for every man, woman and child.
This means for everyone in California, the Federal and State government spends $14,998. A family of 4 cost taxpayers almost $60,000 a year if they live in California.
Unbelievable.
Howwww....UNEXPECTED!!!it all is to these kids...
The first education camp didn’t take too well, huh?
The first education camp didn’t take too well, huh?
It is 9.7 either which is what is was last month
Me to...and I got a $200 CA state refund and had to PAY several $K to the feds....
talk about screwed up system
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