Margaret Thatcher is given credit for having said, “The problem with socialism is sooner or later you run out of other people’s money.” As Venezuela, Argentina, Greece and a bevy of other bankrupt nations are finding out – she was right. Now an increasing number of states are standing in line for the exact same lesson. Most notably our most populated and most socialist state, California. So what do you do when the well starts running dry? There’s only two things governing bodies can do, #1 – spend less, #2 – tax more.
Guess which tact the California legislature is choosing?
On Wednesday California state lawmakers took the first steps toward raising taxes and fees on motorists by convening a special session aimed at solving the state’s transportation and health care funding crises. (Seems California’s health exchange, Covered California, is in the same boat as all the other exchanges – headed straight toward Insolvency Falls.)
Members of a California state Senate committee have endorsed legislation that would increase the state’s already high gasoline tax by an additional twelve cents per gallon and boosting vehicle registration fees up to $100.
Predictably, the measures moved forward via strict party-line votes taken in committee with the state’s long-dominant party (Democrat) voting in locked-step to once again increase levels of taxation on the Golden State’s residents and visitors. This body combined with Jerry Brown in the Governor’s office has scarcely ever passed on an opportunity to impose new taxes upon their electorate.
Current revenue from California’s already sky high 42.35-cent gas tax covers only a fraction of the state’s annual highway repair needs. For unknown reasons those in pursuit of socialist utopia consistently fail to see the obvious, i.e., Maggie Thatcher’s analysis.
For more than a decade California has been a net population loss state. More people are leaving than moving in. (More legal, tax-paying citizens, that is.) As the government grows its socialist agenda via ever-expanding programs, departments and related expenses its income requirements go up. However its income-producing engine (tax payers) is going down. Meaning in order to continue paying for its own expansion government must continually raise taxes on those tax-payers who remain. Such as this new gas tax proposal. Until even more of those still in the tax-payer base say, “Enough!” and leave too. Which results in down-graded credit ratings, falling behind on bills, etc.
Which leads to,….Greece.