My favorite part of the State of the State speech (full text here) was a bit of perspective that almost everyone has ignored. It went like this:
We are still a very rich society. In two years alone, Californians will have added more than $100 billion to their personal income. Yet, our State’s credit rating is the lowest of the 50 states, unemployment is higher than the national average and some journalists are calling California a “failed state.”
In two years, Californians will have added more than $100 billion to their personal income. And given that 20 percent of all income eanred in the U.S. goes to the top 1 percent of Americans. $20 billion of that new income will go to the very richest Californians. More than 60 percent of all income earned goes to the richest 20 percent, which would mean $60 billion in income to people who are already richer than four of five Californians.
Brown gets this, clearly. And he’s no fool; I think he can do simple math. Which would lead you to conclude that an increase in the state income tax for the top brackets could bring in a huge chunk of change — without harming the economic recovery. (And don’t give me that trickle down shit; facts are facts, and the top 1 percent of income earners are far less likely to spend their marginal dollar, creating jobs. They sock it away, creating wealth for future generations.)
I know the idea of talking about higher income taxes is political death, but when we talk about frugality and tightening our belts, let’s remember: California is still a very rich state. We can afford things like public education. Even the governor says so.