Vice President of Communications for the California Manufacturers & Technology Association
The 2008-09 budget cycle will long be remembered as a tipping point in California’s economy. But will we learn from it, or will the state repeat mistakes (or make new ones as the case may be) that will continue our long-standing hold on the precipice of economic collapse?
As California stumbled into 2009 having "solved" a budget crisis just three months earlier that proved to be no real solution, the Governor, teaming with the Democratic leadership, formed California’s Commission on the 21st Century Economy, a commission who’s purpose was to evaluate the state’s outdated and volatile tax system in hopes of bringing some measure of reforms, and with it stability to the state’s revenue stream. After 9 months, the final product provides no more answers to the state’s ills than the current system, in fact, creates even more uncertainty and unpredictability. What it does do however, is provide an opportunity for a classic battle between academic economic theory versus boardroom/dining room economic realities.
We applaud the commission for their efforts and contributions to this seemingly herculean task of reforming the state’s tax system. I believe that most everyone understands and agrees with the fundamental need for reform. Unfortunately, that appears to be where the similarities of thought end.