California Sell-Out

While the Economic Recovery and Reinvestment Act is good news for the nation, the state of California is about to sell out its own citizens to corporate interests.

According to the Los Angeles Times, "The average Californian's taxes would shoot up five different ways in the state budget blueprint that lawmakers hope to vote on this weekend. But the bipartisan plan for wiping out the state's giant deficit isn't so bad for large corporations, many of which would receive a permanent windfall. About $1 billion in corporate tax breaks -- directed mostly at multi-state and multinational companies -- is tucked into the proposal. Opponents say the breaks will do nothing to create jobs.."

But it's not just opponents who say that: But a study by the Center on Budget Policy Priorities, a Washington, D.C., think tank, concluded that the cost of the tax break has far outweighed the job-creation benefits in states where it has been instituted. The center researches how tax policies affect low-income Americans. The study said many companies were using the tax formula to lower their tax bills without doing anything they wouldn't normally do to create new jobs. Other experts have said the change could also mean that companies that put a heavy burden on -- and extract substantial benefit from -- state services won't be paying their full share for them."

After months of unforgiveable recalcitrance, Republicans in the California legislature are forcing this terrible deal, with the connivance of the Governator, and apparently the cooperation of Democrats. After months and months of hot air, they are trying to sneak this despicable "compromise" through during the weekend.

According to a statement by Democratic Lt. Governor John Garamendi: "The proposed budget is not coordinated with the federal stimulus package. In fact the budget is in direct conflict with much of the federal stimulus bill and will dampen and delay its effectiveness. Federal money intended to strengthen schools simply replaces money that this budget cuts from the very same schools. Federal money that is intended to provide health care for low income Californians replaces money that this budget removes. Federal money that will support public transportation replaces money that is cut from the California budget. And so on and so, program after program. Net Zero. The president's effort to restart the California economy is not helped by this budget. "

And what about tomorrow? This budget is the prime example of short term thinking...The state government's job is to strengthen the economy, now and in the future. We have to get it right this time."

Garimendi is proposing five days of hearings on the budget. But legislators are meeting to pass it, literally in the middle of Saturday night. Happy St. Valentine's Day Massacre, California.