California dreamin'


If Californians thinks they can solve their budget deficit problem by raising taxes, they are, indeed, dreamin'.

It's a spending problem caused first by spending too much (duh!) and secondly by betting on the come that existing revenue would somehow recover faster in the existing economy.

One of the big disappointments comes from lower than expected revenue from income taxes. (Sidebar alert: Nevadans who still think income tax is the end-all, be all for Nevada, please note California.)

April is the biggest month for California for income taxes ... and the totals fell far short of expectations. Nothing tells you how bad things are than that indicator.

We're in a nasty economic time. A double-dip recession remains a threat. It's bad now, but it will be 1930s-bad if we slip backwards again from here.

Jennifer Rubin in the Washington Post correctly points out what ought to be obvious:

"The parallel to the federal government (and to Greece) is obvious. Mitt Romney is asking if we are better off than we were four years ago. Maybe the right question is: Do we all want to be like California?"