Courtesy of Mish.
California voters have some choices to make in the upcoming election. For example, Governor Brown says Californians Face ‘Moral Choice’ in Tax Vote
California Governor Jerry Brown said voters face a “moral choice” on his ballot measure to raise taxes to avoid deep cuts to schools.
“What we’re facing here is a very stark moral choice,” Brown, a 74-year-old Democrat, said today at a conference of the National Association for the Advancement of Colored People, or NAACP, in San Mateo, near San Francisco. “Are we going to invest in our kids, in our schools, in our colleges, in our universities, or not?”
Brown’s measure, Proposition 30 on the Nov. 6 ballot, would temporarily boost the state sales tax to 7.5 percent from 7.25 percent and raise the levy on income starting at $250,000. A rejection by voters would trigger $5.5 billion in education cuts.
His plan is being challenged by a competing proposal offered by Los Angeles lawyer Molly Munger, whose father Charles Munger is vice chairman of Berkshire Hathaway Inc. (BRK/A) Her initiative, Proposition 38, would increase tax rates for 12 years on income of more than $7,316 by 0.4 percentage point for the lowest earners to 2.2 percentage points for those making more than $2.5 million a year.
Reflections on “Moral Choice”
The moral choice was not to put ludicrous proposals in front of voters in the first place. Was there nothing else but schools for Brown to cut?
Even if there was nothing else but schools to cut, pray tell, why can’t teachers make a “moral choice” of reduced benefits “for the sake of the kids”?
Why is it overburdened taxpayers have to pony up so teachers and other public unions get benefits most can only dream about?
The real “moral choice” is to tell Brown where to shove it and the same thing can be said to Molly Munger who wants to “temporarily” hike taxes.
Definition of “Temporary”
Molly’s definition of “temporary” is a “mere” 12 years. You are out of your mind if you think that will be the end of it. As soon as taxes are hiked, public unions will be demanding massive pay hikes, “for the kids” of course.
My friend Hugo Salinas Price discusses the meaning of “temporary” in his excellent article Reflections on the effects of War as compared to the effects of Fiat Money.
At Bretton Woods in 1944 Henry Morgenthau and Harry Dexter White outmaneuvered John Maynard Keynes, the British Delegate to the Monetary Conference, and the Conference ended by accepting the American “diktat” for the post-war monetary structure of the world: the dollar was to be as good as gold for purposes of international payments, and the US promised to redeem for gold dollars held by other national central banks at the rate of one ounce of gold for each $35 dollars tendered for redemption. …
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