Thursday, February 19, 2009

California passes a budget

Yahoo article

The one tax increase I was hugely in favor of, the gas tax increase, was removed at the last minute. Ugh. Yes, I'm a bit obsessed in my belief that our trade deficit is part of what made this mess. Oil is far to large a component of that deficit to not make strategic policy changes to cut consumption.

Many of the other tax increases... I consider a problem.

I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle. -- Winston Churchill

Wise taxes and tariffs have a role. I would have supported up to a 50 cent per gallon increase in gasoline taxes! We need better roads, a bus system, and even rail. (I expect two people to dislike the last: my best friend and Rob Dawg.) Then again, I have relatives who design rail projects and if they could be installed from precast (in a factory) concrete assemblies, it actually makes economic sense. ;) Assuming you also build bus terminals to anchor major destinations (e.g., LAX, union station, Burbank airport, etc.)

I'm glad there is a budget. I'm just very upset the wisest tax in the whole package was cut. The only problem is that in six months the state will have to panic and put together a revised budget to handle the further drops in income, capital gains, sales, and property taxes.

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Rob Dawg said...

I'm on record for an 11 cent gas tax increase. The difference is I would like to see it go to transportation projects. The 12 cents the banditos de sacramento were pushing was the worst sort of productivity redistribution.

wannabuy said...

Rob Dawg,

I'd be for a 50 cent tax if it went to transportation.

The more I think about it, the more I realize this budget is nothing more than a three month patch. It will keep the SS California floating for a little longer, but not forever. Sigh...

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