Sacramento Democrats, desperate to avoid the kind of reduction in the size and scope of state government in California that are needed to balance the state’s books, are unbelievably still pursuing tax increases as a "solution" to chronic overspending, and a tax code that is predictably volatile as it disproportionately taxes the income of California’s wealthiest citizens.

In yesterday’s Los Angeles Times there is a story about how Democrats are supportive of a $1.50 per pack increase in cigarettes which, according to their analysis, would result in a $1.2 billion increase in tobacco tax revenues to the state’s general fund.

This is a stupid idea. As we have pointed out many times, Californians are among the most overtaxed people in the entire country, and the last thing we need is higher taxes, frankly, on anything. Never mind the fact that this takes us back down the path of the "sin tax" where all-knowing politicians in Sacramento hoist taxes on activities that they decide are "bad" for our collective community. Ironically, of course, taxes like these… Read More

The California Supreme Court has ruled 6-1 that Proposition 8 was a valid amendment, rather than revision, to the state constitution. However, in a concession to Proposition 8 opponents, the 18,000 same-sex marriages that occurred last summer will remain "legal.” The web site for the opinion has been so overwhelmed that even thirty minutes after its release, many are still unable to read the opinion. This is certainly a victory for the democratic process here in California. More analysis from FR will follow… … Read More

President Barack Hussein Obama will announce the nomination of Sonia Sotomayor to the Supreme Court at 7 am pacific time this morning, according to an Associated Press leak of the embargoed announcement.

Sotomayor is a female hispanic first generation American who grew up in a housing project with one parent, her mother, and who went to Princeton, graduated second in her class, and then went to Yale Law School. That covers an awful lot of bases in the Democrat’s demographic. But Sotomayer has also earned what she has the hard way. God bless America.

Sotomayor is a left liberal who will be a judicial activist. Surveys of her rulings, even by liberal observers, put her in the same ideological groove as Justice Souter (whom she would replace) if not a little more to the left. In one case, the "Ricci" case, she dismissed a discriminationappeal brought by white firefighters without even writing an opinion. She has also made a couple of light-headed public statements. She… Read More

Ahhh, Memorial Day weekend, the unofficial start of Summer! I look forward to the weeks ahead and picking a day to have some of the neighbors and a few friends over for a barbecue.

Thank goodness we have the freedom to invite to our homes those we choose, as often as we want, without having to ask permission of some local agency.

Let’s say for a moment that I like my friends and neighbors enough, and the aroma of a barbecue just as much, to have a weekly get-together at my place? About 15 folks, for regular burgers and dogs, maybe steaks. Bring your own, those who can show, fine, if not, next week, or when you can.

Uhhh, before my wife nips this in the proverbial bud, let’s say she likes the idea?

Okay, that too would be our choice — to have a weekly feast and invite some friends— not the government’s, right? Yep. Again, thank goodness.

Now say that instead of a bbq, it’s a weekly book club. About 15 of us, reading the same book on our own, then getting together at my house regularly to discuss it. The Da Vinci Code, perhaps. Whatever.

Again, thank goodness for… Read More

Thanks to Meredith Turney for her brief post on the great decision today from the California Supreme Court upholding Proposition 8. Per an early a.m. exchange with our esteemed publisher, I will throw in a few lines of legal mumbo jumbo to fill-out the analysis of today’s solid legal victory for the sanctity of marriage in California.

First of all, kudos to SenateRepublican Leader Dennis Hollingsworth for being an Intervener in the case. This is a victoryfor Dennis too and thank you for sticking your neck out, Senator!!! Also, as a PepperdineLaw alum, I must mention our main man, the Honorable Ken Starr, Dean of Pepperdine Law School, who appearedfor the Interveners. High-five to Jim Sweeney, a great lawyer in Sacramento, who assisted. And the CA Attorney General’s office, who had to represent the good guys. And apparently did a good job.

A sad face goes to the National Center for Lesbian Rights which lost the case. (Aren’t they involved in the Jeff Miller recall?).

The decision of the Supreme Court today essentially overturns a prior decision of the majority of the California Supreme… Read More

One of the most frequent recipient of the FlashReport’s Golden Pen Award is scholar, professor, columnist and radio talk show host Dennis Prager. Prager has just released his first "Prager University" video on You Tube. Did you know that the key to the uniqueness and greatness of America can be found on the front and back of a penny? … Read More

If there is any problem with government budgeting, it is how the government budgeting analysts approach their job. They always (not sometimes, not once in a while, not even frequently, but always) start the budget discussions with what they spent last year on a program by program basis. Take a look at the Governor’s Budget Summary I referenced in my last post on this item. Go to the Table of Contents. The first substantive item? 38 pages of "Summary of Major Changes by Major Program Area," summarizing how much the change is spending on each program area is. There are then 8 pages of "Economic Outlook," recognizing that government revenue is based on growth and activity in the private sector. Finally, on page 63 of an 85 page document, the analysts discuss revenue. Finally.

Want a real budget solution? Talk about revenue first. Analyze why revenue is dropping. Is it a "general economic malaise? Is it a government induced recession? Are government policies toward the private sector inhibiting private economic growth? What things can government do to enhance revenue growth in the private sector, thereby increasing… Read More

For anyone who has actually been following this little series, you will note that I have not yet even talked about government expenditures yet. That is because I believe that, to solve the budget problems in this state, we need to completely rethink how we do budgets.

(1) First focus on history–see where we have been, what has occurred, how we got here. Government budget analysts never look back, they never analyze how they ended up where they are. As a result, they never know where they have been and consequently don’t really know where they are going

(2) Focus on revenue first. Government revenue, as we all know, is dependent on the private sector. As p. 69, Figure REV-03 shows, those earning between 0 and $50,000 a year constitute 65% of the taxpayers, yet generate less than 5% of the revenue to the state. Those who earn more than $50,000 a year are 95% of the state’s revenue. A solution must focus on attracting more people to the state who earn more than $50,000 a year. A quick question–will raising taxes on those folks attract more of them, or encourage them to leave? And if they leave, how will that affect… Read More