California has been seen as a basket case with regards to its exploding budget deficits. Interesting enough this was occurring during the administration of Republican Arnold Schwarzenegger. He attributed the deficits to reduced tax revenues and overspending. He cut programs in draconian fashion but could never escape the reality that he was making the problem worse. Ultimately he did what both Reagan and Bush did, leave exploding deficits to their successors.Go Moonbeam!
California now has a budget surplus. Depending on whose numbers one uses, it is anywhere from $1.2 billion according to the Governor or $4.4 billion according to the Legislature’s independent financial analyst. How did California do it and what should they do about the surplus?
Democrats President Bill Clinton, President Barack Obama, and Governor Jerry Brown did not attempt an ideological game with blinders to the actual results. They tried basic arithmetic. They raised taxes. Interesting enough, the results were the same.
Bill Clinton got a balance budget with a surplus. Barrack Obama is seeing a budget deficit that is shrinking faster than anyone expected. Suffice it to say that the budget deficit hole left by two wars, two massive tax cuts, and a massive drug program on the credit card by the previous administration along with an irresponsible & intransigent Congress cannot be solved in two terms.
Jerry Brown remembered basic arithmetic as well as he brought California to a budget surplus. He raised taxes on the wealthy and cut programs (some more than he should). Does this sound familiar, the balanced approach? Time and time again the evidence is out there that it works and it improves the economy for all.
Maybe the reason back in February California companies did not bite on Governor Perry’s “sell Texas” tour is that inasmuch as they may love that the Governor of Texas is willing to pilfer the middle class to bring them to Texas, they know a pilfered middle class does not make the best workforce. California spending its surplus not on tax cuts, or abusive business incentives but instead on human capital in the form of education and improved healthcare is a sustainable long-term solution.
Tuesday, May 28, 2013
"Without Republicans To Obstruct Him..."
Posted by Gordon at 13:32