Post-Election: Will California Lead the Nation?

For good or bad, California has been the trend-setter of things to come for the rest of the country.

This time, post-election, California has:

Passed Proposition 30 to raise tax on California residents supposedly pay for "education":

A frend was in a gathering at a public school yesterday, where the educators and administrators and well-wishing moms and dads were gloating over the passage of Proposition 30 which will tax every California residents extra so that California schools have "enough" money to "educate" children. Knowing how these school administrators earning 6-figure salaries have squandered money that was borrowed on the back of the California taxpayers in the past, she wondered how they would justify burdening their fellow Californians for more waste. Well, the cure-all slogan is the same after all: "It's for the kids!" This particular school hopes to use the new-found money to purchase tissue paper boxes, among other things.

Prop 30 will not only raise taxes on the income of more than $250,000 (which in California is not that rich, particularly in Bay Area) for seven years, but also hike the already high sales tax by a quarter percent for four years. However, nowhere is it said that the money raised will be definitely used for schools. Minor details for these educators.

Handily defeated Proposition 37 that would have required labeling of GMO food:

Flawed as it may have been, Californians overall were easily persuaded by the coalition of big ag and food businesses in the US with a ton of money (Monsanto, whose ex-VP advises Obama on food safety, alone spent $8 million to defeat the Proposition 37) not to require GMO labeling because "it will hurt small farmers and retailers". Eat GMO and support small farmers! (Oh wait, have I heard that before somewhere else?)

Handily voted in Proposition 39 on "green initiatives" (supposedly):

The proposition was bankrolled by a hedge fund manager to the tune of 32 million dollars. Prop 39 will requires multistate businesses to pay income taxes based on percentage of their sales in California, and dedicate revenues for five years to clean/efficient energy projects. After that, the money may be used for schools. Sure.

So who is this hedge fund? Farallon Capital management LLC is based in San Francisco, catering to high net worth individuals. Mr. Thomas F. Steyer, who generously "donated" 32 million dollars to his campaign for Prop 39, is the Co-Senior Managing Member of the firm.

Let's see, which companies will be the first to simply pick up and leave California? Oil and gas companies are my guess.

And most importantly,

Handed Democratic "super majority" in the State Assembly:

What does that mean? It means the Democrats in the Assembly alone can amend the state constitution, override the governor's veto if they are so inclined, pass anything including raising taxes without Assembly vote or public vote. I'm sure it will be either "for the kids" or "for the environment" or "for stopping global warming". Or better yet, "for fiscal responsibility". The easiest target will be Proposition 13. The next easiest will be to charge sales tax on food, with a promise that low-income families will be exempt.

Overall, rent seekers' victory over the productive class that is getting smaller almost by the hour.

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