Friday, June 05, 2009

Five ways to save California

California voters recently defeated a slate of budget and tax tricks put on the ballot by Governor Arnold Schwarzenegger and state lawmakers, leaving the state budget in a hole so deep we've struck oil five times on the way down.

Governor Schwarzenegger suggested Friday that the answer might be a fifteen percent flat tax on everybody's income in order to keep up the payments to the millions of people who get checks.

This sounds like a good way to accelerate the outflow of people who pay taxes and the inflow of people who get checks.

A better way to save California is to overhaul the tax and regulatory structure, and keep overhauling it, until you'd have to be crazy not to start a business in California, instead of the opposite.

Of course, that's not going to happen.

Another way to save California is to fully exploit the natural resources of the state by drilling for oil and natural gas, and by exploring the use of desalination of ocean water to provide cities and farms with affordable access to adequate water supplies.

That's not going to happen either.

So here are five ways to save California without asking Californians to become rational on the subject of business or the environment.

Legalize Marijuana. The state already taxes alcohol and tobacco, and legalizing marijuana would open up another source of sin-tax revenue. Untold budget savings would result from freeing up police resources, courtroom time, and prison space. Pardoning all felons convicted of non-violent marijuana-related crimes would save the state the cost of their room and board. When the feds show up, the state should challenge the Controlled Substances Act in federal court on the grounds that it violates the Tenth Amendment, which reserves all powers not delegated to the federal government by the Constitution to the states, or to the people. (More on that here.)

Legalize Gambling. Why should selected Indian tribes have a monopoly on gaming in the state of California? Legalize gambling statewide, or permit cities to legalize it within their borders, and enjoy the tax revenue from the kind of gaming resorts that spring up in the desert when the government stops prohibiting them. Energy-saving bonus: Less traffic on I-15 to Las Vegas.

Sue the Federal Government for the Cost of Illegal Immigration. The U.S. Supreme Court has ruled that states cannot deprive illegal immigrants and their children of a free public education or emergency medical care, but that doesn't mean state taxpayers have to carry the financial burden alone.

Charge for Public School. Even if the state asked parents to contribute only a token amount, like $200 per year, charging for public school would remind everyone that education has a value and ought to be appreciated, not blown off in favor of merrier pursuits. Of course, no one will agree to this. But it's still worth debating, if only to call attention to the fact that somebody's paying for what passes for public education in California.

End Busing for Desegregation. Children should attend a school that is a reasonable distance from their homes. Spending money on buses and drivers so kids can spend two to three hours a day on the freeway is irrational, wasteful, pointless, and racist. The warped idea that black and Hispanic children can only get a good education if there are white students in the class is something we should abandon, and not just for budgetary reasons.

In case you missed it, former California Governor Gray Davis was interviewed on CNBC this morning by Erin Burnett, who expressed her annoyance that California voters are constantly using the initiative process to limit the discretion of state government. "People are not going to give up the right to the initiative process," Governor Davis explained patiently, "They're never going to give that up, so just-- you have to live with it."

Give the teachers an award. At least one person in this state has learned something.

Copyright 2009

Editor's note: You might be interested in "The Great Death-Defying California Recall Election" at www.SusanShelley.com. If you live in California and you'd like to sign a petition to recall Governor Schwarzenegger, visit http://www.totalrecall2009.com.

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