Social Conscience, Sate Budget Deficits, Social Profile, California Tax Revolt, Social Values
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May 22, 2009
The Weekend Edition
Today’s Zinger:
Is it better to be fiscally conscientious of your social spending or socially conscious in your fiscal spending?
The Morning Briefing:
California voters have spoken in a loud way. No more taxes. Work with what you have. Yesterday’s vote on Prop 1A was nothing short of a shot across the bow. Not only at the California Legislature but the U.S. Congress as well. Their denial of more spending and a call for less government and the rumblings of a Constitutional Convention is a harbinger of a 21st Century Manifest Destiny. This movement is going to work its way east and it won’t be long before the citizens of this country balk at paying the bill of expansionist government and lofty social programs while traditional programs like Medicare and Social Security are trimmed.
The Discussion:
Governor Swarzenegger thought that the seeds had been planted for a tax increase to pay the state’s ballooning deficit. As Zinger commented in the May 20, 2009 article on California’s search for a “pot” of gold, the state has a $21-$25 billion deficit. The Governor fertilized the seeds with the threat that California would have to fire the fire department, would have to teach the teachers a lesson by letting many of them go and allow 50,000 prisons to escape into the California sunshine if the taxpayers did not approve the proposed tax hike. With a roaring voice they said no. So the game of chicken begins. Who will blink, the government or the taxpayer? If the California legislature tries to implement the fiscal threats, then citizens will decry the decline in services. If taxpayers don’t ultimately approve funding, then they will have to rethink their social values that drives costs.
After years of social activism, California has reached the inevitable point where the cost of their policies exceeds the willingness to pay. California is not the first government to hit the social wall. Most wealthy societies in history have adopted greater social conscious as their prosperity increased. Without the threat of military hostilities from an unfriendly neighbor and a feeling of personal financial security, members of wealthy societies look to self-actualization for fulfillment. They turn their attention to the poor, the environment, the arts, etc. The focus on social issues drives the cost of government until such point as they become financially overwhelmed by the cost of their social conscience.
The social conscience of the citizens of California is being taxed. Tough choices lie ahead and three alternatives seem to be most likely. Initially the state will cut services. This will be a test of the taxpayer's will. Budget cuts will not be accepted so the California legislature will either raise taxes or they will have to fundamentally rethink their values and adopt a social philosophy that the citizens can afford.
Governments like taxes because they are far easier to approve than having to make dramatic change in the way they govern and the programs they administer. I fully expect California to raise the tax on sin (alcohol, tobacco, marijuana, gambling, etc.), raise the tax on use (roads, cars, licenses, etc.) and raise every other tax they can think of without affecting the state income tax to which the voters gave a big fat NO. The stealth tax will invade everyday life of California’s citizens.
There will be a call to reevaluate the stance on offshore drilling (which could easily close the budget deficit gap), reconsider their stance of allowing free healthcare, social services, welfare, education, etc. to illegal immigrants (which could close the budget gap) or they will have to consider partial pay of free services (such as students will have to pay towards their free college education). California also has some of the strictest environmental laws in the country.
Every state has a different social philosophy and social profile. Many northeast and west coast states are very progressive in how they deal with the environment, the poor, the elderly, the sick and affirmed, illegal immigrants, etc. As seen in the May 20, 2009 ZingerKing article, these states lead the nation in deficit spending. They also have some of the highest taxes of all states. The balance of social conscience and taxes represents a major division between red states and blue states (liberal vs. conservative or Democrat vs. Republican). Many of these states will have to undergo reevaluation of their core beliefs based on the realities of their financial situation. Some may not reengineer their thinking until it is too late. Others will look for the near term federal bailout to fund the out of balance priorities. The right of each state to have a unique profile is guaranteed in the U.S. Constitution. The requirement that taxpayers from other states bailout their spending is not.
What has happened in California is about to happen at the federal level. New healthcare legislation, environmental legislation, new education policy, new immigration policy, new welfare policy, new Social Security policy will drive unprecedented government expenditures. As Americans embrace their social conscience the credit card bill is growing. In a matter of just a few years we will be paying close to $1 trillion per year in interest on the debt. Most of us never used the word trillion until the last several months. These costs and deficits are numbing. My only hope is we hit the social wall before the bill is so great that we won’t be left with many options for repayment. China may become the bill collector and given the focus and precision I witnessed at the 2008 Summer Olympics, I don’t want them demanding payment. Guido may be kinder and gentler.
Conclusion:
We have entered a new era of social conscience. At the federal level, Barack Obama is driving one of the most progressive changes in American history. America is making a left turn on most social fronts and the President is moving rapidly to achieve his vision of America. As yet, we do not know the cost of this vision in terms of new programs and services, new government oversight and a reduction of traditional government programs like Medicare, Social Security and defense. Until the bill comes in, many Americans are proud of their social conscience while others are seeing the social wall ahead.
There is a lag between policy and cost. The cost of the policies enacted today will not fully be understood for several years. Barack Obama will be out of office, but the bill of his spending spree will be left for future taxpayers. California is a model of progressive policy. The states in the northeast and west coast represent similar philosophies. These states may get Obama bucks to bail them out in the short term, but who will bailout the United States? Printing money is not the answer and the appetite for new lending from the international community is already satiated. Ten years from now the United States will resemble California showing disdain for taxes, by those that actually pay taxes, and deep in government programs that will resist any change.
Shameless Request:
Please forward a link to ZingerKing to friends, family members and colleagues that would appreciate or benefit from this site.
www.ZingerKing.com
May 22, 2009
The Weekend Edition
Today’s Zinger:
Is it better to be fiscally conscientious of your social spending or socially conscious in your fiscal spending?
The Morning Briefing:
California voters have spoken in a loud way. No more taxes. Work with what you have. Yesterday’s vote on Prop 1A was nothing short of a shot across the bow. Not only at the California Legislature but the U.S. Congress as well. Their denial of more spending and a call for less government and the rumblings of a Constitutional Convention is a harbinger of a 21st Century Manifest Destiny. This movement is going to work its way east and it won’t be long before the citizens of this country balk at paying the bill of expansionist government and lofty social programs while traditional programs like Medicare and Social Security are trimmed.
The Discussion:
Governor Swarzenegger thought that the seeds had been planted for a tax increase to pay the state’s ballooning deficit. As Zinger commented in the May 20, 2009 article on California’s search for a “pot” of gold, the state has a $21-$25 billion deficit. The Governor fertilized the seeds with the threat that California would have to fire the fire department, would have to teach the teachers a lesson by letting many of them go and allow 50,000 prisons to escape into the California sunshine if the taxpayers did not approve the proposed tax hike. With a roaring voice they said no. So the game of chicken begins. Who will blink, the government or the taxpayer? If the California legislature tries to implement the fiscal threats, then citizens will decry the decline in services. If taxpayers don’t ultimately approve funding, then they will have to rethink their social values that drives costs.
After years of social activism, California has reached the inevitable point where the cost of their policies exceeds the willingness to pay. California is not the first government to hit the social wall. Most wealthy societies in history have adopted greater social conscious as their prosperity increased. Without the threat of military hostilities from an unfriendly neighbor and a feeling of personal financial security, members of wealthy societies look to self-actualization for fulfillment. They turn their attention to the poor, the environment, the arts, etc. The focus on social issues drives the cost of government until such point as they become financially overwhelmed by the cost of their social conscience.
The social conscience of the citizens of California is being taxed. Tough choices lie ahead and three alternatives seem to be most likely. Initially the state will cut services. This will be a test of the taxpayer's will. Budget cuts will not be accepted so the California legislature will either raise taxes or they will have to fundamentally rethink their values and adopt a social philosophy that the citizens can afford.
Governments like taxes because they are far easier to approve than having to make dramatic change in the way they govern and the programs they administer. I fully expect California to raise the tax on sin (alcohol, tobacco, marijuana, gambling, etc.), raise the tax on use (roads, cars, licenses, etc.) and raise every other tax they can think of without affecting the state income tax to which the voters gave a big fat NO. The stealth tax will invade everyday life of California’s citizens.
There will be a call to reevaluate the stance on offshore drilling (which could easily close the budget deficit gap), reconsider their stance of allowing free healthcare, social services, welfare, education, etc. to illegal immigrants (which could close the budget gap) or they will have to consider partial pay of free services (such as students will have to pay towards their free college education). California also has some of the strictest environmental laws in the country.
Every state has a different social philosophy and social profile. Many northeast and west coast states are very progressive in how they deal with the environment, the poor, the elderly, the sick and affirmed, illegal immigrants, etc. As seen in the May 20, 2009 ZingerKing article, these states lead the nation in deficit spending. They also have some of the highest taxes of all states. The balance of social conscience and taxes represents a major division between red states and blue states (liberal vs. conservative or Democrat vs. Republican). Many of these states will have to undergo reevaluation of their core beliefs based on the realities of their financial situation. Some may not reengineer their thinking until it is too late. Others will look for the near term federal bailout to fund the out of balance priorities. The right of each state to have a unique profile is guaranteed in the U.S. Constitution. The requirement that taxpayers from other states bailout their spending is not.
What has happened in California is about to happen at the federal level. New healthcare legislation, environmental legislation, new education policy, new immigration policy, new welfare policy, new Social Security policy will drive unprecedented government expenditures. As Americans embrace their social conscience the credit card bill is growing. In a matter of just a few years we will be paying close to $1 trillion per year in interest on the debt. Most of us never used the word trillion until the last several months. These costs and deficits are numbing. My only hope is we hit the social wall before the bill is so great that we won’t be left with many options for repayment. China may become the bill collector and given the focus and precision I witnessed at the 2008 Summer Olympics, I don’t want them demanding payment. Guido may be kinder and gentler.
Conclusion:
We have entered a new era of social conscience. At the federal level, Barack Obama is driving one of the most progressive changes in American history. America is making a left turn on most social fronts and the President is moving rapidly to achieve his vision of America. As yet, we do not know the cost of this vision in terms of new programs and services, new government oversight and a reduction of traditional government programs like Medicare, Social Security and defense. Until the bill comes in, many Americans are proud of their social conscience while others are seeing the social wall ahead.
There is a lag between policy and cost. The cost of the policies enacted today will not fully be understood for several years. Barack Obama will be out of office, but the bill of his spending spree will be left for future taxpayers. California is a model of progressive policy. The states in the northeast and west coast represent similar philosophies. These states may get Obama bucks to bail them out in the short term, but who will bailout the United States? Printing money is not the answer and the appetite for new lending from the international community is already satiated. Ten years from now the United States will resemble California showing disdain for taxes, by those that actually pay taxes, and deep in government programs that will resist any change.
Shameless Request:
Please forward a link to ZingerKing to friends, family members and colleagues that would appreciate or benefit from this site.
www.ZingerKing.com
Humm... interesting,
Thanks for sharing,
Keep up the good work
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