A long time ago, I covered state and local government for a variety of local newspapers. I watched, year, after year, as government, under the slowly swinging axe of Prop. 13 made cut after cut into vital social services and things like parks and libraries and shifted the tax burden to the "user" through fees. I saw politicians forced into funding needed projects through bond measures (the pay-later plan). And I saw how dysfunctional California's revenue system really was, a system where any crazy minority could hold the public hostage to its demands.

I wrote article after article on these issues, often containing warnings that these were short-sighted policies that would bankrupt the state. As an editor, I argued the same things more forcefully, pointing out the the long-term health of my community and our state depended on making more democratic reforms that allowed sensible revenue generation (taxation) and even sometimes got to make the point that those who get the most out of a society (corporations and the rich) should pay the most into it, rather than be supported by the "users" of public services (the middle class and the poor—in other words, me you, and just about everyone we know).

Well, dammit, I was right and one of the largest economies in the world is about to go bankrupt.

Here, however, are two pieces that really do a good job explaining the systematic problems the state has and offer reasonable, sensible solutions that would put the state on track for renewed prosperity.

Now read the whole article:

Schwarzenegger missed his golden opportunity to give Californians the truth - Los Angeles Times

Let's list a few of the lies he and our other political leaders have peddled about California's government and examine how they contributed to this week's debacle at the ballot box.

The most onerous lie is that Californians are burdened by the highest state taxes in the nation. The truth, according to 2006 figures derived from the U.S. Census, is that as a percentage of all personal income, California's tax and fee schedule ranks 18th in the country.

Then there's the canard that we unfairly soak our rich. This is supposedly a no-no, because the rich might flee, taking with them their sterling job-creating potential.

The dirty little secret, according to Citizens for Tax Justice, a left-leaning nonprofit group, is that California's wealthiest residents shoulder the lightest burden of any income group in the state. The top 1% of California income-earners (average 2007 income: $2.3 million) paid 7.4% of their income in various state taxes last year, counting the federal deduction for state taxes. The highest rate was paid by the poorest residents. Those earning $20,000 or less, with average income of $12,600, forked over 10.2% of their earnings in sales, excise, property and other levies.

This year's budget deal increased the disparity, raising the effective rate on the rich to 7.8%, but that on the poor to 11.1%.

A couple quick notes:

—Don't blame this problem on immigration. It is no more true now than it was in the 1930s when the state posted armed police officers at the borders to keep out Okies and Arkies, or anyone who looked poor. Then, as now, politicians found it easier to blame immigrants for all the problems rather than recognize systematic problems with the economy or the way they had been running the government. It was a lie then, it is a lie today, even though, as a native-born Californian whose family has been in the state over 150 years, I wouldn't mind sending all the newcomers packing; I imagine the original Indian families and those of the Mexicans who came afterward feel much the same way. Of course, that's just silly—right?

—Less government is not better government. We live in an incredibly complex society and it requires a big and complex government to protect our safety and welfare. That should be a no brainer. And, guess what? Governments cost money. A reasonable amount of taxation, equitably (notice I didn't say "equally") distributed across the society, is a good thing. Those that don't think so are free to leave the state (that may solve the immigration problem somewhat—these people can leave and go bankrupt another state or nation).

—Finally, for god's sake, don't vote who says these things. It is not in your long-term (or your families' or your friends') best interest to do. Vote for a brighter future, not lower taxes or out of fear. That just makes sense. But I told you all once and you didn't listen then, either.

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Tags: california, politics

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