California's Taking A Bullet Train To Its Head

On a near daily basis, people and businesses are leaving California to find new homes and new places  without high taxes and government spending, environmental nonsense, and absolutely out-of-control regulations. It's as if the ghost of Horace Greeley has come back to say: "Go East young man. Go East!"  And when they do leave, they take their tax base with them; leaving California with a declining source of revenue.  So, in response to the exodus, Governor Jerry Brown wants to raise taxes even higher in an attempt to close the gap on an already estimated $10 billion budget deficit for this year.  With the 3rd highest state income tax rates in the nation, Brown seems to be hell bent on being numero uno; guaranteeing that California has the worst business climate of all the states.

Now, you would think that, with all the debt and deficit problems and with people exiting due to over-regulation and taxing, the California legislature and Governor Brown would be working overtime to reduce spending.  But, no.  California continues to do what it's always done: spend and regulate.  In fact, Jerry Brown's latest foray into extravagance is a proposed, taxpayer-funded $100 billion bullet train from L.A. to San Francisco.

Big labor is all for California taking the "bullet" because this 10-year project means a lot of union jobs.   The environmentalists see it as a way of keeping cars off the roads and airplanes out of the air. However, the fact that this project will cost Californians $10 billion a year in money they don't have seems to go right over the politician's heads.  California is already running a $10 billion budget deficit and this project will double that. The fact that bullet trains have only proven themselves cost effective against other modes of transport over short distances -- 40 miles or less -- without serious government subsidies, also doesn't seem to have Jerry Brown and other Democrats losing any sleep. Nor does it seem to matter that a tax-payer subsidized bullet train will actually reduce state income tax and, in addition, cause airlines to cut back on flights causing a further loss of revenue.

California is already near bankruptcy and, if the bullet train project is actually approved, it could very well push the state over the edge into financial default.  What concerns me is that, when California does default, the state will likely seek a bailout from Washington, and, you can bet that big spending Obama and other Democrats will be glad to oblige; and, my guess is, without any real austerity mandates.  So, ultimately, California will be rewarded for its irresponsible handling of its state government, with the rest of the country having to pony-up the cash to bail them out.