Analyst: California faces $28 billion deficit

Analyst: California faces $28 billion deficit

California's budget deficit will grow to $28 billion through June 2010 unless lawmakers take bold action, possibly including a hike in the state income tax, the Legislature's nonpartisan analyst said Tuesday.

California is in a bit of a pinch.

How is the state going to increase taxes on a sagging economy? California is already one of the highest taxed states in the union and business is already fleeing.

How will the state cut spending? The voters love the bond measures and vote them in year after year. California democracy tends to vote money and spending for itself, at least it thinks it does.

What is going to get the axe in California? The unions are super powerful and cutting education, police/fire, or other state worker groups is political suicide and therefore impossible in California politics.

The s--t is hitting the fan once again in the golden state. With the current economic crisis, it is a big piece.

reply to post by wutone

Analyst: California faces $28 billion deficit

There is a easy answer to fix the problem. Some-most-all people will not like it, but it is the only way to help to solve the problem. California could allow the used-uranium, the left over uranium that the other countries around the world doesnot want and they-all IS will give top dollar $$$ to any other country who is willing to want it.

reply to post by wutone



Socialism and State Welfare is impossible without high taxes.

California.. You deserve the increase in your income tax. I hope they tax your property, and I hope they increase your sales tax.

Californians had no problem going to Oregon, Washington, Nevada, Arizona and pay above market prices for homes driving house prices through the roof.. I see no reason why they should not then enjoy an increase in taxes to pay for their welfare state.