Case 4.1 California Government In Crisis

Assignment 4.1: California Government in Crisis

There are many obstacles of California politics, which contribute to our inability to live the California Dream. For example, California debts continues to escalate, due to our taxation system hasn’t changed over the past years. Hence, during 2012 there was a budget gap of 16 billion dollars, which was more than the total revenues receive for general funds. Since, our taxation system depends highly on the income taxes paid by capital gain, the stock market must increase, so it can create a surplus. If that doesn’t happen, the government must find another way to finance their budget. On the other hand, California is a divided state, which makes hard to pass bills. Thus, the addition of two-third majority and 50% plus one is essential for raising taxes. But the political parties refuses to work together because they have different point of views from the economy. The republicans think that raising taxes won’t solve any problem. Even if the democrats won the supermajority, they will still need the

First, the population is changing overtime, which is causing the demand of new schools, buildings, and transportations. These feature projects requires a lot funds, which the government doesn’t have. Secondly, Most of the budget in California comes from income taxes, which are used to pay the interest debt leaving the state with nothing. Thirdly, we have the interest groups that are more engaged into political than us the people. We should get involve more in public policies and affairs that will affect us. Furthermore, California’s taxes are too high, perhaps if we lower the taxes, companies will start hiring people back. Lastly, the two-third requirement for raising taxes, it’s impossible to achieve. It will be better if they lower the requirement for supermajority to raise taxes. these were the five elements that causing the crisis in