Tuesday, November 09, 2010

Sanity will eventually come to California

Americans delivered a message to their political leaders last Tuesday, and here in California, we sent a message too. The message California voters sent to the politicians in Sacramento is; we believe in you to solve our problems, and we gave you all the power you need, so get it done.

Basically, the Democrats just assured themselves a beat-down in the 2012 election. Why? They control everything now. They will not have Republicans to blame in two years. With Jerry Brown sitting in the Governor's seat, Democrats hold huge majorities in both houses, and with Prop. 25' allowing a simple majority to pass a budget filled with higher taxes, Democrats are in complete control of the Golden State. Sound familiar?

If the Democrats succeed in taxing their way to prosperity, they can crow all they want. They will hold political power for generations. By next summer, around budget time, it will become increasingly clear they are not going to succeed. Why? The Democrat's core belief of raising taxes on the "rich" all the while spending money they don't have on programs that don't work has never succeeded, anywhere on the planet. We are about to find out what happens when you take the handcuffs off big government Democrats, backed by public employee unions and liberal special interests, in the middle of recession. This is going to get ugly folks.

As the rest of the country starts to climb out of this economic recession, California will wallow in budget deficits, higher taxes and a continuing toxic business climate. California is borrowing 40 million dollars a day from the federal government to keep unemployment checks flowing. We have sold bonds (borrowed money) to pay for the fantasy of high speed rail, green energy, along with a host of other happy sounding money pits that continue to add to future deficits. California voters have bought into the Democrats' argument that all we really need is never ending stream of ever increasing tax revenues. This scenario is pure fiction, but I guess Democrats can always hope. As I say all the time; hope is not a plan.

Watch the freeways in the next few months; you will see a more than a few moving vans heading out of the Golden State. These are not just backwards rednecks leaving this progressive utopia; many of these folks will be small business owners. You know, the "rich" people who actually create jobs. They will join a not so small group of business owners who have moved to states like Arizona and Texas. These are business friendly states, states who do not paint hard working, successful people as villains who must be punished for their prosperity. They welcome new business to their state with open arms, and they are taking some of the best and brightest from California.

So as business flees higher taxes and crippling red tape, Democrats will be faced with paying back the teachers unions, public employee unions, and the big environmentalist groups with a smaller number of "rich" people to extract taxes from. How will they get all this new tax money? From you and me. Get ready for new taxes on everything. Higher gas taxes, sales taxes, energy taxes, unemployment taxes, car taxes, you name it, and the taxes on it will be going up. Will raising all these taxes bring new jobs to California? According to Democrats, it's a sure thing, you can count on it.

As we have seen from President Obama, Speaker Pelois and Majority Leader Reid, you can print money by the train load, and you can borrow trillions from China, but you can't print jobs. Here is something the Democrats fail to grasp; small business creates the vast majority of new jobs in America. If you want to grow something, grow the private economy. Small business owners are not the ATM for states like California, they are the engine that makes the economy run. Could we not treat them like a piƱata to be smacked around until all the candy falls out. Good grief.

The lesson we should learn over the next two years is this; if you have to choose between bigger business and bigger government, choose the one who makes the money, not the one who spends it. The former makes the latter possible, not the other way around.

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