Sometime in the next couple of months The Federal Government is going to give the state of California a lot of money. After lavishing more than a trillion dollars on Banks, Insurers and Auto Companies, there is a 0% probability that the government will sit idly while the largest state collapses.
There real question is how do we go about propping up California. Whether we like it or not, California will set a precedent for the rest of the country. Believe it or not California is not the only State struggling to keep its head above water. Congress and the administration need to have a strategy ready before Arnold comes crawling cap in hand to Washington.
Rather than putting together an ad-hoc plan for California, we should develop a national strategy for dealing with insolvent states. The plan that I am proposing is simple, non-intrusive and will ensure that Federal Government gets back every penny that it spends bailing out the states.
Federal loans should be made available to any state that chooses to accept them. In exchange, the state will be required to levy a 1% sales tax, whose revenue would be directed to the Federal government until the loan is repaid.
While, no one would enjoy paying the extra tax, it wouldn’t be nearly as devastating as the massive budget cuts currently facing states across the country. By securing a dedicated revenue stream the loan would be virtually risk free for the Federal Government. Furthermore, enacting a national policy would assure investors that state bonds were a safe investment, reducing borrowing costs for every state.
The greatest advantage of this plan would be in avoiding the political circus of negotiating a special bailout for every state in need. My plan would not solve the underlying problems facing California, but that is intentional. It is up to voters and politicians in California to find a long term solution to the state’s budget crises. Allowing Washington to interfere in the fine details of the State budget would be far worse.
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Its sad that the California legislators refuse to talk about the massive illegal alien dilemma, they have in the state? Nothing is said outside of public comments and the rural media? Perhaps that’s why large papers are losing their readership, in that they are not informing–THE PEOPLE–of the truth, just rhetoric and propaganda. To make matters worse, one of their own–Los Angeles city manager Andronovich admitted that an $11 billion dollar deficit, could be attributed to foreign nationals. Indifferent to the California taxpayers the Liberal Democrat assembly manipulated Proposition 187, so it would not reach the Supreme court. It’s enactment would have stopped illegal families subsidized from the welfare trough. Now they are paying the piper–big time. Now everybody is suffering in the illegal immigrant Sanctuary state, as the Sacramento legislators prepare to push for higher taxes.
Say–YES–to e-verify! It will empty the workplace of illegal labor stealing jobs. Errors can be resolved at the Social Security office, where illegal workers wouldn’t dare to go. They told us–both government–and private they their was only 11 to 12 million illegals living here? THAT BEEN FOR THE LAST EIGHT YEARS! HOW MANY ARE THEY REALLY NOW IN AMERICA? 20 maybe 30 plus? They have lied to us before–? When is American citizens going to stop being gullible and refuse to pay ever higher taxes for those who hire them–or the illegal immigrants and their extended kinship.
Tell our corrupted legislators to seal THE BORDER. TELL THE REAL TRUTH ABOUT THE BORDER FENCE AND HALT WEAKENING IMMIGRATION LAWS AND STOP PANDERING TO THE OPEN BORDERS, FREE TRADERS AND SPECIAL INTEREST GROUPS. Say–NO–to any AMNESTY. Outside of this–NOTHING WILL HAPPEN–EXCEPT ANOTHER PRE-ARRANGED AMNESTY, THAT TAXPAYERS WILL GET THE BILL IN INFINITY. READ ABOUT THE IRREVERSIBLE OVERPOPULATION NIGHTMARE. Digest more of the facts and unbiased truth at NUMBERSUSA, JUDICIALWATCH,CAPSWEB, ALIPAC, AMERICANPATROL. Find out undisclosed news and the numbers of illegal aliens in the penal system at THEDARKSIDEOFILLEGALIMMIGRATION & ILLEGALIMMIGRATIONDAILY.
The national plan for dealing with insolvent states is to let the citizens of that state who got the benefits of all fo the profligate spending bear the burden. It is unconscionable to spread the burden of assinine policy on those who neither supported it, nor got the benefits of it.
I am from New York, and the politicians here have been just as irresposible, greedy and powerhungry as those in California. The people of New York need to bear that burden.
The fact is that it was an incredible mistake to use taxpayer money to bail out private corporations, no matter how big they were. The resources released in bankruptcy would have been put to use in much more effective ways. Now we have to bear not only the cost of the irresponsibility of managers and unions, but also the incredible incompetence of the federal governement in business.