Life Among the Liberals (050609) by J. F. Kelly, Jr.

A commentary by J. F. Kelly, Jr. Southern California has the finest weather in the world, with a gentle Mediterranean climate that never gets in the way of your plans. There are so many wonderful things that come with living in California but they come with a steep price. It takes a lot of gold to live in the Golden State and it’s getting worse. California is number 1 in many categories, not all of them admirable. According to the Tax Foundation, its state income tax rate is the highest in the land at 10%, nearly twice as high as the national median. It has the highest sales tax rate as well at 8.25%. And real estate prices, even after the bubble, remain among the highest nationally As if high taxes and home prices were not enough of a disincentive to living here, Californians have to put up with a dysfunctional state government in Sacramento that almost makes Illinois and New Jersey look good by comparison. California’s legislators are addicted to spending and can’t seem to help themselves. According to the Center on Budget and Policy Priorities, the state had the second highest budget shortfall in the nation amounting to 13% at mid-fiscal year. Unemployment in California is also higher than the national average. It is currently above 10% and projected to rise. The number of jobless people and the large illegal immigrant population are straining social services, health care and the schools. What is perceived as a less-than-friendly business climate, combined with the high cost of living for employees, has discouraged businesses from locating here and encouraged many to relocate out of the state. According to the American Legislative Exchange Council, nearly one and one-half more non-immigrant residents have left the state than have entered it during the last decade. Many more say they would leave if they could sell their homes. Unemployment, the business slump and the high cost of retirement benefits and health care for the armies of public employees have placed a tremendous burden on the state’s finances. Tax receipts are not growing nearly fast enough to maintain California’s crumbling infrastructure and the state government is literally starved for cash. Faced with these realities, competent managers would reduce spending to live within their means but competent managers are in short supply among the ruling classes in Sacramento. Chronic overspending has ruined the state’s credit rating, now among the lowest in the nation. Total spending has grown by nearly 40% in the past five years without a commensurate increase in revenues. So how do the politicians in Sacramento plan to deal with the mounting deficits? The only way they know how, by raising taxes on their constituents, already the most heavily-taxed in the nation. Sacramento plans to raise taxes, not only on income, but on sales, gasoline and automobiles as well. In a special election on May 19, Californians will be asked to vote for half a dozen budget-related propositions placed on the ballot by the legislature. Proposition 1A purports to limit future deficits and spending by increasing the size of the so-called “rainy day” fund, requiring above average revenues to be deposited into it for use during economic downturns “and other purposes”. Since the state unrealistically counts on high revenues that will probably not be forthcoming, “above average revenues” are unlikely soon. Like so many other state ballot propositions, 1A is grossly misleading. It will not reduce spending or reform the budget process. It will, in fact, increase taxes by $16 billion. A “yes” vote means that recently-passed higher taxes would be automatically extended for two years. And increasing the size of the “rainy day” fund would simply provide more money for legislators to spend. In truth, California’s “rainy days” are already here. It is living beyond its means and it is driving businesses and taxpayers away. Rising taxes, an anti-business culture, an obsession with environmental activism and reflexive adherence to the wishes of the powerful public employee and teachers’ unions that keep these big spenders in office have reduced a once prosperous state to near ruin. California is home to many of the most liberal politicians in America and their influence has become pervasive in Washington now that the Democrats are in power as exemplified by House Speaker Nancy Pelosi, Energy and Commerce Committee Chair Henry Waxman, Education and Labor Committee Chair George Miller and the state’s two ultra liberal senators, Dianne Feinstein and Barbara Boxer. It is increasingly apparent that as California goes, so goes America. Copyright 2009 by J. F. Kelly, Jr.