Knighty, if you listend to gerald celente, he predicted tax revolts. i believe they happen.
CA has 16% unemployment once the lies are removed from the stats. we have the highest gas tax, highest income tax, lowest level where the highest income rate hits, highest sales tax and highest business tax west of the mississippi.
iow, we are taxed to the hilt and the government's owners, the public employees' unions want more. they want raises, they want pension increases, they want 0% layoffs, etc.
a two class society is turning up. LA county could easily be paying 11.75% in sales tax within a year.
with income tax receipts collapsing from the private sector and the public sector demanding more, more, more on top of a $30 billion deficit and no money in the till...
CA could face some serious fiscal disruptions. they don't know how to spend less (CA govt has doubled since 1998!), they only know how to spend more. this just won't work with collapsing revenues that will collapse all the more as they continually tighten their fist around the private sector workers and businesses. it is a sith lord thing.
the munis may pay off, but there is some real structural risk over the medium to long term. unemployed CA citizens with no job and no home won't like paying for all the goodies the CA union employees (legislature) want to give their owners (the unions).
i'm sure there are some good deals, but caveat emptor. |
