Tax Guru – Ker$tetter Letter

With a number of California cities already filing bankruptcy, there will be a chain reaction all over the country of more and more of them doing that.  It is bound to happen at even faster pace, as governments are now required to be more honest in their disclosures of their unfunded pension liabilities, as Rush Limbaugh described in yesterday’s Morning Update (Text   Video).

Besides a growing number of cities and counties filing for bankruptcy protection in order to get out from union pension obligations, I would bet money on the State of California having to do the same thing.  By his own admission, Governor Moonbeam’s latest budget is based on the passage of two tax increases on the November ballot and the assumption that the targets of those tax hikes will just stick around, bend over and pay those higher taxes.  That erroneous assumption and his idiotic plan for a multi-billion dollar bullet train boondoggle can have no other result than complete financial collapse for the State.  Brown’s scenario isn’t that different from 0Bambi’s; except that the Federal government can print money and borrow from the ChiComs, which State governments can’t do.