Increasing Taxes, Increasing Unemployment
On Friday, it was announced California’s unemployment rate hit a twelve-year high at 7.3%. On Sunday, the legislature met in extraordinary session to vote on a budget plan that would raise the income tax on upper income taxpayers and raise the corporate tax. The measure was defeated, failing to secure a two-thirds vote.
Good thing because, had the plan succeeded, the unemployment rate would likely jump even higher.
Taking money out of the economy from businesses and those who can invest in job creating enterprises is not the way to confront an unemployment crisis. It would just exacerbate the problem. Corporate tax collection was lower than expected in July according to the Controller’s monthly report, down almost 18% from the projection in the Governor’s May revise. Raising taxes on businesses won’t help that situation.
Why Monterey Would Be a Cool Capital
This piece of mine which ran in yesterday’s Los Angeles Times started out as an attempt at satire. But now I think I’ve talked myself into it. Why not relocate state government to Monterey? The state government could use a change of scenery..
T. Boone Pickens: The First 21st Century “Energyman”
On September 27, 2006 to great fanfare and international media attention, Governor Schwarzenegger signed AB 32, California’s landmark bill to drastically cut greenhouse gases in California.
As with all “landmark” bills the devil is in the details. Does anyone remember AB1890 California’s “landmark” Electricity Deregulation bill? As someone who was in the trenches at the California ISO during the Energy Crisis of 2000-01, I remember it vividly.
Whether you agree with the merits of AB 32 or not, it is the law and now we must implement it. The California Air Resources Board and a slew of other government officials and business groups are now in the process of setting the standards of how California is going to meet the aggressive goals set out by AB 32.
Setting standards is one thing, but what will be the means to get there?
Enter T. Boone Pickens.