California Rejects Tax Increases

All of the tax increases that were on the ballot in California yesterday went down to resounding defeat. This graphic from the Los Angeles Times tells the story:

CalifBallot4.jpg

The one ballot initiative that passed? It bars increases in the salaries of public officials when the state’s budget is in deficit.

California is in deep trouble. It’s hard to say what comes next, but the common assumption is that California will look to Washington for relief. And why not? When you’re spending funny money, there is little reason to stop. If only you could create wealth by running a printing press, the Obama administration’s policies would make perfect sense. And California’s problems would have an easy solution.

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