How’s those gas prices working out……..
No one’s buying, prices going up. Make sense? Where are all those Obamama’s printing press dollars going? Not to me.
Again, interest rate are going up. No one wants to lend money for free. Even to the government. Subtract taxes and inflation from the yield means buying Treasuries at a loss. Not going to happen even if you are the Chinese government.
And what are the state governments going to do? Talk about fucked.
California goes so goes the nation. Right?
California’s pending bankruptcy has deep roots in tax policy, public employee costs, regulatory dysfunction and a declining real-world economy.
Standard-Issue Financial Pundits (SIFPs) like Paul Krugman ( State of Paralysis) are claiming the state’s problems all stem from miserly California voters refusing to pay higher taxes. Uh, Paul, do you pay $10,000 in property taxes for a property you bought in 1992? I do, and I don’t think that’s a low tax.
In case Paul hasn’t visited the Golden State recently, allow me the honor of introducing a funny little concept called fact to his pro-tax rant. We pay 9.5% sales tax (9.75% if you voted for various transit projects like BART) which is among the highest in the nation.
If you make a decent wage (I don’t, but many do) then the state income tax is about 10% as well. That rate is also among the highest in the nation.
What we have here is not just cognitive dissonance but pathological disassociation from reality: California is a very high-tax state, with among the highest rates in the nation in virtually every category of taxation.Voters rejected the bogus tax-and-borrow-more propositions for two reasons: