◼ Pacific Research Institute senior fellow says California doesn't need an extension of the Prop. 30 tax increases - we need lower taxes to stop jobs and productive citizens from leaving the state. - Orange County Register
...California’s problem was never about revenues – it was, and continues to be, about a lack of effective budgeting. Overly restrictive budget rules and lack of spending control in other budget areas (especially health care) are driving California’s budget problems and crowding out spending on everything else – including education. Just like a pay raise cannot save a shopaholic from bankruptcy, tax increases cannot solve California’s budget rigidity problems.
The consequences from Prop. 30 have been a further slowdown in California’s employment growth, greater pressure for businesses and people to migrate to other states and increased difficulty managing the state budget in the long run.
These adverse incentives will persist until the tax rate increases and additional budget rigidity Prop. 30 created are repealed.
Which brings us back to Prop. 30’s anniversary. The best way to celebrate is to make Prop. 30’s second anniversary its last.
