California on the Verge Bankruptcy
 

If California goes down what will happen?

Do the other states bail them out?

Do they get a loan from another country?

I pay enough in taxes here in New Jersey and we have enough problems here.

How are you Californians gonna vote?


URL Source: http://crippy.me/2009/05/15/californ...y.aspx?ref=rss
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California taxpayers are revolting and the state could be on the verge of bankruptcy. On May 19, Californians will go to the polls to vote on six propositions that deal with the tax code. All six must pass in order for $14 billion in tax hikes to take effect. Polls suggest however, that five of the six propositions will be defeated.

From Lew Rockwell's blog:

If any of the five fail, the budget package must go back to the legislature. The fiscal year begins on July 1. There is not much time to come up with a solution.

The polls indicate that five of the six will fail. Only one is assured of passage. That one specifies that if the state runs a deficit, there will be no pay raises for legislators in that fiscal year. That proposition is on the ballot only because the vote-switching Republican made it a condition of his vote to raise taxes. Their pay is $116,000 a year, plus $170 a day for expenses. Frozen? The horror!

The governor has been on the road across the state promoting yes votes on these propositions. Yet, back in 1990, he sat in front of the cameras and did a promotional for Milton Friedman's PBS TV series, "Free to Choose." His rhetoric was libertarian.

If the propositions fail and the legislature cannot come up with another plan, California could be only months away from bankruptcy. Unless of course he federal government bails them out.

This is why I think Nancy Pelosi (D-San Francisco) will attempt to push a bailout bill through the House of Representatives when California's voters turn down the budget. If she is successful, then a new precedent is set. The U.S. government becomes the lender of last resort to state governments that are faced with a taxpayer revolt.

A federal bailout would mean that taxpayers in all states will be forced to pay for California's unsustainable, welfare state.

God help us!
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Stop spending.. Problem solved

If the gov't "bails out" california, there's going to be 49 other states in line right behind them with their hand out.

Actually there are many states that live on hand out from the govt.. Alaska for instance doesn't have any sort of state tax or sales tax and the govt pays them over $2 for every dollar they pay in to the Feds.

Cali gets back less than they pay in, meaning even if the govt bailed them out they wouldn't be a leech like Alaska is on tax dollars and many of the other states that can't support their budgets with out federal funds.

Funny, they sent me a grand the other day. Guess they are paying the citizens off first.

That is so true.

+ 1 :2 cents:

Whatever with California. When the housing market went through the roof, what did they do with all of the property taxes they collected? Now that the value of houses are half of what they were last year, they'll be collecting even a lot less. We are so fucked it isn't even funny.

I think that is wishful thinking ? One of my houses lost 50% in value last year yet they still demand the same rate of tax. Im effectively paying double tax. I requested a new valuation 6 months ago and so far nada, not a fucking word :error

I see it more like... if the federal government "bails out" California, there is going to be 49 other states in line to revolt.

Politicians have no problem spending "windfalls" on new programs as opposed to fixing the programs they already have. :-)