that's correct - deep cuts and higher taxes would be the logical solution -
not so in California. We've had scandal after scandal how government misuses funds to further their own agenda such as illegal increases in pension funds, exorbitant salary increases, excessive personnel, and the list goes on and on.
Taxes: small business take the largest hit right now. Just one example:
businesses pay property taxes on their equipment and "personal property"
it went from $4000 to $ 20,000 for no apparent reason as the simple
increase in fees (I am fighting that one though). Healthcare cost are unattainable for small businesses and its employees. California has the
highest rates in just about every insurance you can think of.
Individual state taxes are high, so is sales tax (8.87 %) and we've been
paying school bonds practically forever. The common taxpayer in California is taxed to the maximum, small businesses even more so. In the coming
year we'll see an exodus of businesses into neighboring AZ and NV which
isn't helping our economy the least.
What we need is a solid, sensible economy plan that supports businesses,
individuals and the government alike. So far, we've only seen increases
in government entities and mismanagement. Our city (San Diego) was
subject to an FBI investigation due to illegally allocating funds into their
own pockets. It's a mess, admittedly, but Prop. 13 is the only tax advantage
that we have left and with housing prices that soared in the past 20 years,
the housing market would see a massive bankruptcy wave without Prop. 13.
It's all a snowball effect, if we only would learn from that.