(Victor Joecks/NPRI) – A great piece from the Wall Street Journal on how screwed up California’s fiscal situation is.
Listen up, California. The other 48 states — your cousin New York excluded — are sick of your bratty arrogance. You’re the Lindsay Lohan of states: a prima donna who once showed some talent but is now too wasted to do anything with it.
After enjoying ephemeral highs and spending binges, you suffer crashes that culminate in brief, unsuccessful stints in rehab. This cycle repeats itself every five to 10 years, as the rest of the country looks on with a mixture of horror and amusement. We’d feel sorry for you if you didn’t constantly flip us the bird.
Instead, we’re making bets on how long it will be before your next meltdown. Oh, wait — you’re already melting down. Opinion Journal’s Allysia Finley argues that California is suffering from spending addiction like starlet Lindsay Lohan.
You’ve racked up nearly $70 billion in general obligation debt, and that doesn’t include your $500 billion unfunded pension liability. Your own analysts predict you’ll face a hole of at least $80 billion over the next four years.
And what caused California’s fiscal problems? Did California fall off the fiscal cliff because of a reluctance to tax — the same reluctance Nevada’s leftists often accuse Nevada of having? Not hardly.
According to the Tax Foundation, California has the fourth-highest income tax rates in the country (top rate of 10.55 percent), the eighth-highest corporate income tax (8.84 percent), the highest sales tax in the nation (8.25 percent) and property taxes that are slightly below average.
What’s the cause of California’s fiscal woes? Unsustainable government spending.
The next time a leftist tells you that Nevada needs more taxes, remind him of the shape that California — or Lindsay Lohan — is in.