One thing I have noted since I arrived in DC in that there are fewer vacant store fronts per street block than there were in Los Angeles. Probably has something to do with the need to provide services to the increased amount of people on the government payroll in this town.
And since tax dollars don’t flow to California cities like they do to a jurisdiction’s capital, higher taxes will only help improve the economic picture in one (once-)Golden State city–Sacramento, so it’s hard to see who the latest plan our state legislators are debating in that city will help entrepreneurs raise the capitol they need to fill those store fronts in Los Angeles:
The Democrats who control the Legislature have fired their opening salvo against Gov. Arnold Schwarzenegger’s spending blueprint, which proposed eliminating California’s welfare program and cutting deeply into other state services, by proposing that the state rely instead on billions of dollars in new taxes to balance the budget.
Seems that Democratic legislators are more concerned about maintaining existing government programs than ascertaining the causes of our state’s economic malaise.
If they want to increase the state’s revenues, they’re going to have to improve the state’s business climate. And raising taxes while delaying corporate tax breaks won’t do anything to improve that climate, instead will prevent entrepreneurs from expanding their operations and bringing on new talent.
By contrast, lowering taxes would most help small businesses, you know those enterprises which create the most new jobs. And you’d think that in a state where one in eight people are out of work, our state legislators would want to do something which might make it easier for those looking for jobs to find one.