It seems that the proposition 13 program of majority rule while protecting minority rights only works if the majority agrees that the rights of the minority deserve respect in the first place. The state of California is now issuing IOUs instead.
California sends out IOUs
Deep in debt and short on cash, California on Thursday churned out its first batch of IOUs in nearly two decades amid grumbles from bankers, growing public outrage and scant progress in negotiations to resolve the state’s widening budget deficit. The state controller’s office fired up a pair of printing presses and began rolling out nearly 29,000 IOUs totaling more than $53 million, most of them destined for residents around the state still awaiting income tax refunds. Recipients also include some businesses, pensioners, health clinics, college students and many others who get checks from the state.
So far California passed the largest state tax increase in the history of the entire USA. Then after the voters rejected extending that tax increase the state is back in debt. When new taxes were proposed one Democrat legislator opined that while he supported the new taxes perhaps the state should live within its means committe chair Noreen Evans said "There is this mantra out there 'living within our means' and while it sound really nice it sounds really simple and it sound really responsible it's
meaningless. Our means are completely within our control". Assemblyperson Bass lamented that this time the Republicans won't join in raising taxes because Assemblyman Adams (Republican who voted to raise taxes last time) is being subject to a recall and opined that recalling or threatening to recall anyone who votes for a tax increase is
terrorism and that anyone who supports the recall or opposes tax increases is a
terrorist. I can only think of one person outside of Assemblywoman Bass who would use "terrorist" to describe anyone who would disagree with a government action, but he uses "potential murderer" instead.
Next we will have to find out if the banks will accept these IOUs. If the interest rate is high enough they might. If they don't then the credit rating for California plummets. And as always, California leads the nation.