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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (483417)	5/26/2009 3:10:17 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1573917

WR, > Krugman's correct. Only in the context of keeping CA's tax revenues relatively steady. But even federal tax revenues aren't very steady. Only $500B of Obama's $1.8 trillion deficit is due to increases in spending. The rest are due to tax revenues falling off a cliff. Repealing Prop 13 now would evict a ton of lower middle class homeowners and tank the CA real estate market even further. All to pay off the unions and their overly generous benefits. The proper way to deal with fluctuating tax revenues is to build up rainy day funds during times of abundance, which takes lots of fiscal discipline. Arnold failed to do that, partly because of the union-backed Democrats, and now we're all paying the price. Krugman knows this too, I believe, but he can't resist taking a cheap shot at CA. In that sense, he's no better than the common Tejek. Tenchusatsu