Free Republic

Bloomberg News’ Christopher Palmeri recently wrote of the legacy of Proposition 13 still hovering over California. It has far too often been said that “As goes California, so goes the nation.” 33 year old Proposition 13 has become a broad generic term for tax revolt. Palmeri reports that at least 20 states have followed the 13 lemming. Tax reform was needed, but it has become apparent that 13 was not the right formula. However, there was far more to that 1978 election than Proposition 13 – its evil stepsister was Proposition 10 promoted by the banking industry. I wised up...

California’s combined shortfall for this fiscal year and next is astonishing. At an estimated $35 billion, it is greater than the entire general fund of any other state except New York. It’s enough money to buy 625 million gallons of red ink. Reasonably good red ink, at that. But perhaps it’s better not to joke about it. The mammoth revenue gap is sounding alarms far beyond the state’s borders. In December, two rating agencies lowered California’s bond rating, costing the state millions of dollars in higher interest on money it must borrow. Adequacy of Revenue; 1 our of 4 Fairness...