Friday, February 20, 2009

Reap as ye shall sow

Page A3 if you have the hardcopy:

Californians Get a Budget That Leaves Few Happy

"A broad range of Californians will feel the pain. The plan to balance the state budget -required by law - will slam the poor, as well as the middle class, some economists said. For a household earning $150,000, the tax increases will almost wipe out the $800 per couple tax credit in the stimulus package signed by President Barack Obama this week, according to California's Legislative Analysts Office. The state taxation plan and the federal credit "work against each other," said Legislative Analyst Mac Taylor."

Comment: US Senators and Congressmen, see diagram and commentary in the post below to understand what you've done. You just made huge regressive tax increases an inevitability. I know you didn't bother to read the 1,000 page bill you passed, but I've made the diagram simple enough that even you can understand it.

U.S. Aid Won't Save Big Apple Budget from Bloomberg's Ax

"Stimulus aid must be used in specific areas, such as federal education programs, Medicaid payments, and construction projects, it can't be used to cover the cost of the city's large work force....To eliminate the gap in the city's 2010 budget, Mr. Bloomberg in last month proposed cutting social services, aid for the elderl, emergency personnel and cultural activities. That could mean reductions among fire companies and firefighters; children's services, such as child care and foster care; and cutting 1,000 police officers"

Comment: I've said it before, and I'll say it again, this earmarking of funds, especially state aid, is a fundamental problem with the stimulus package. The stimulus dollars should be disbursed to the general funds of state and local municipalities so the state and local governments, such as Bloomberg and the California state legislature, can allocate the funds instead of having their hands bound to a set of earmarks.

Now we're going to have a surplus of hole diggers and a reduction in police and fire fighters in NYC. I hope those hole diggers can save me from a burning building or fight crime. I also hope they can take care of any elderly relatives, and perform CPR should any of us have a heart attack.

But hey, what do I know? I'll just let the market speak for me.

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