"Los Angeles is struggling to raise money and cut costs to fill a $200 million budget gap that could force thousands of layoffs and drive the city into bankruptcy. ... Officials ... worried that without the cuts, more businesses and jobs would flee the city, which has a 12.5% unemployment rate. ... 'If we didn't roll that [tax] back, there was a real chance many of them would leave,' said Austin Buetner, the mayor's new economic chief. 'They're high-paying businesses and the wages are spent in our city,' he said. ... Analysts say giving up cash for the prmise of job creation can be risky and doesn't always work. 'State and local governments are going to have to place their bets on what will bring in greater revenue and keep more jobs,' said Jessica Levinson, director of political reform for the nonpartisan Center for Governmental Studies in Los Angeles. 'It's a balancing act that every jurisdiction will have to face. Few governments have any room for error. Cutting taxes can mean laying off teachers and police officers to save cash. 'Most cities, counties and the states are strapped for cash and can't afford to make an ill-conceived gamble,' Ms. Levinson said", Tamara Audi at the WSJ, 9 March 2010, link:
Even LA taxpayers "vote with their feet". We'll see if LA's internet company tax reductions start a trend. Do you still want to own muni bonds?
3 comments:
Muni tax competition accelerates?
Oh boy...
Oh, if we don't raise taxes we will have no choice but to lay off teachers and police? Typical city government lie; threaten to cut off the few services the people expect most in the attempt to scare them into tax increases.
Want to balance the budget in LA? Cut all funding, direct and indirect, that supports the millions of illegals living in LA. This is the elephant in the room; the illegals are a colossal drain at so many levels for city, county and state governments, but the current LA political class has no will to do anything about it.
Cut deeply into the educrat administrative class along with large swathes of their over-payed cohorts throughout the city. Declare the existing pensions invalid and break the public employee stranglehold on the city coffers. Go through the schools and get rid of any teacher not worth their salt, regardless of seniority, along with anyone not doing any job essential to teaching in a classroom.
Redesign the main roads to accommodate one-way traffic so a 5 mile commute becomes one, not two hours.
Bring back the ghosts of LAPD past and then hunt down the gangbangers who make whole parts of LA unlivable.
Ubu:
When "former" La Raza member Villairagosa runs out of money, even he will be forced to act. Not until then.
IA
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