How Long Have I Been Warning About This?

From the Wall Street Journal Editorial Board:

Republican plans to slash the state-and-local tax deduction are already reaping benefits in high-tax states. Democrats in the Northeast say they’re having second thoughts about raising taxes. And lo and behold, California Gov. Jerry Brown is arguing that public pensions aren’t ironclad...

Republicans in high-tax states say that abolishing the state-and-local tax deduction is unfair since lawmakers are legally barred from reducing government pensions and thus have no choice but to raise taxes to pay for them. But nearly every state court faced with the issue has upheld modifications.

The real problem is political, not legal. Democrats don’t want to renege on promises to their union friends and financiers. Mr. Brown isn’t running for re-election, so he may feel liberated. But perhaps other Democrats will be more motivated if their wealthy denizens raise a ruckus and leave their states.  (boldface mine--Darren)

If more teachers understood this, perhaps they wouldn't be so reflexively socialist, would celebrate the stock market, and would want businesses to do well--because our retirement is invested in the stock market.  Click here to read many of the posts I've written about California's Teacher Retirement System.

If you don't want to sign in at the WSJ to read the editorial excerpted above, read the whole thing here.