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California's Default Is Certain
I sympathize with California, coming from a state with a similar problem. In Minnesota, though only a simple majority is needed to raise taxes, and the success of tax increases through referenda would seem to indicate the public mood, our taxophobic governor has vetoed any tax increase, thereby requiring a supermajority of two-thirds to raise a tax (just like California): and the Republicans have barely above one third of one house, enough for their unreasoning attitude to endanger state finances (again, you'd think the steady loss of seats the last five years would tell them something, but no). We're not as far along as California, but we're going the same way for the same reason.
So I'll say yes to the bailout of California, with strict enough conditions to make bailouts unappealing for the other 49 states. The federal taxpayers will tide California over while it straightens out its finances, conditional on enough Republicans acting like adults and agreeing to tax increases to access the structural deficit. California will also have to stop requiring a two-thirds majority for tax increases. Maybe California will be required to reform their ballot initiatives.
It seems such a large amount of federal dictation of how a state handles its finances should deter any other state from wanting to let things get to the point of asking for a bailout.
Jun 28 10:36 PM
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