California budget charade becomes more comical as Hilton splits

Even if you don’t live in the Pyrite State, I hope you’re enjoying the show of our state budget charade. The budget deficit is $42 billion, probably higher. Tax increases are inevitable — and won’t work. Higher taxes will only make matters worse.

The Democratic majority and Gov. Arnold (R-Austria) long have plumped for tax hikes. Republicans have held out, but now are cracking. The GOP will exchange tax hikes form some cosmetic spending reforms.

None of it matters. Spending will have to be cut sharply, at least $20 billion a year — and every tax rate increase actually will reduce tax revenues. That’s because business keep fleeing Taxifornia. If you’re not here, they can’t tax you — at least not as much.

The latest company to leave is Hilton Hotels.

(Click here for more.)

About John Seiler

I was an editorial writer at The Orange County Register for 19 years, until I took a buyout in 2006.