RUSH: In the wee hours of the morning after it became apparent that California Governor Jerry Brown won big. Jerry Brown convinced voters in his state to raise taxes on themselves, called Proposition 30. Prop 30 had the full support of unions, which will reap a windfall from the taxes imposed on the rich. One of the taxes that Californians voted for is a tax on high earners. It's retroactive. It will stay in place for seven years. A retroactive income tax on high earners in California voted for by Californians.
There are not enough California high earners for this to pass, if only they voted for it. Now, Heather Mac Donald says, break this down, that you're gonna find that quite a few traditional Democrat voters voted to raise taxes retroactively on the rich. And among those voters you'll find enough or a lot of Hispanic voters and a lot of female voters and a lot of other minority voters, because that's how they're aligned. They vote for two things: Santa Claus and progressive taxation on the rich. Now, the imposition of these new taxes in California means, according to Governor Moonbeam, that he won't have to enact harsh spending cuts on the schools and the universities. Now, we're gonna keep track of this. I've iCal'd this one.
Governor Brown says that because the people of California voted to raise taxes on themselves, there will not be any cuts for schools and universities. California voters have been promised with these taxes they imposed on themselves that their budget problems are over. So for the next seven years, the Democrats in California ought not harangue all of you people out there with tales of woe about budget deficits 'cause it's been fixed, at least when it comes to the schools and the universities. The teachers unions, every one of them should all live happily ever after now for the next seven years with the money that you have voted retroactively, raising taxes on yourselves, via Prop 30. And of course they shouldn't spend more than they take in, right? This new windfall revenue is gonna cover everything and there shouldn't be any new spending now, and there won't be, of course, the governor promised.
We will learn soon, by the way, if California Democrats have a supermajority in both branches of their assembly, the legislature. They're two seats shy, and some of the close races -- in fact, it may be over. I haven't heard how it turned out. But if the Democrats win total dictatorial control over the California legislature, then they could impose higher taxes whenever they want without asking you to vote for it yourself. He-he-he-he. And not even Moonbeam could stop 'em if he was inclined, which he won't be. In fact, the LA Times has an editorial on this.
By the way, California is where we are headed. California is almost, folks, a microcosm for where the country is headed. I mean, they're Balkanized out there. It's a bunch of different states. The rich live in a few places and the rest of the state is dying. It's a shame, actually. LA Times editorial: "Message to Sacramento: Tax, but don’t overspend." Yes, you see, folks, "In return for backing Proposition 30, voters expect an end to the fiscal shenanigans that have sent the state careening from one budget crisis to another." So California has a $600 billion state debt, $600 billion, a projected $16 billion deficit, but look what's happened? You voted tax increases on yourself and you've been told now the problem's solved. Oh, jeez, keep a sharp eye, folks.
RUSH: All right, folks, it is official. It is official. The AP you just published that the Democrats have indeed gained a supermajority in the California Senate. That means they got two-thirds of the Senate and they've got the Assembly, and that means they can raise taxes. They got Moonbeam over there in the governor's office across the street. Well, it's not across the street. The hotel is across the street.
Anyway, they got Moonbeam over there. They don't need Republicans to raise taxes now. Do you realize they can raise taxes every day? They said they're not going to because you just raised taxes on yourself in California. Retroactively for seven years, you just raised taxes on yourselves, and that solves all the problems for seven years. No more complaining from the teachers in the unions 'cause that $16 billion deficit is gone!
You just raised taxes on yourself. They won't have to be emergency calls anymore for spending cuts. There won't be any emergency calls for more tax increases because you voted tax increases on yourself. In fact, Willie Brown, the former Speaker of the California... Let me find it. I keep meaning to get to the phones and I'm gonna get to the phones, but I got Willie Brown here talking about this, if I can find it. It's sound bite number 18.
Last night on CNBC on the Kudlow Report, Larry Kudlow: "Do you really think it's a good idea? First of all, upper-income people have very volatile income, particularly in California. Silicon Valley, you have a bad year, you lose your income. You never get the sales tax. You never get the income tax. This stuff's been tried time and time again. I understand that it passed. What I’m asking you is what makes you think this time it's going to actually succeed?"
BROWN: It's gonna succeed because the people blessed it. You've not had a direct blessing by the people. The people said, "Yes, I'm willing to pay more to do the things that need to be done." You see, we had on the table a huge number of cuts if this measure did not pass, and the cuts were already in place. They were gonna be aut-o-matic. As of today, you would be discussin' programs you're backing out of: University sections that you'd be closing; schools that you would be, in fact, shutting down; stopping the number of days you have for schools.
RUSH: So, see, this is gonna work because you fools blessed it! Uh, you people blessed it. You voted for it yourself. That's the difference in that tax hike. See, if the legislature had authored the tax increase and the governor had signed it, it maybe wouldn't have worked, but since you voted for it in California it's given. It's automatic. This is outrageous.
With the spending in that state, the level of taxation in that state, the streets ought to be paved with gold out there. And California's exactly what Obama wants to do, folks. We have a microcosm out there. California's a bellwether. So let's watch how the California economy takes off, and let's watch no spending cuts for seven years, and no more taxes for seven years. Let's keep a sharp eye. I got it iCal'd. I got it iCal'd.