Twenty-five percent of California's revenue comes from income taxes paid by the 144,000 richest taxpayers, so "if one of them leaves, it's a really bad thing." Lots have left. Some never really arrive. Pierre Omidyar, after founding eBay in San Jose, resided in Nevada, which has no income tax.
California's cascading crises prefigure America's future unless Washington reverses the growth of government subservient to organized labor. The state cannot pay its bills, poorly educates its young, and its taxation punishes whatever success that its suffocating regulatory regime does not prevent.
This is where the US is heading under President Obama and the Democrats. And what happens when the country gets there?
A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap...
Meanwhile, on Monday morning, a budget meeting between Gov. Arnold Schwarzenegger and legislative leaders failed to produce a result. Amid the budget deadlock, Fitch Ratings on Monday dropped California's bond rating to BBB, down from A minus, the latest in a series of ratings downgrades for the state.
The state is issuing IOUs instead of tax refunds or payments to its creditors.
He who has eyes to see, let him see.