Thursday, January 22, 2004

YOU HEARD IT HERE FIRST . . . SORT OF

A couple of months ago, I pointed out what California's fiscal problem looked like.

It now appears they are beginning to realize that, contrary to the belief of the extreme left, you cannot just tax the rich. It may work in an extreme market overvaluation bubble, which the SF Bay area experienced in the late 90's, when many, many, many individuals were making well in excess of $1 million per year in personal income. But if you adjust your expectations to that level of income (and subsequent tax revenues), you won't survive the market downdraft that will follow.

Read Dan Weintraub's piece, which sums this up. Dan ends by suggesting the Democrat legislature would be wise to consider measures that would increase the income of the rich. Yeah, that'll happen.


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