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Why is it that when people spend public funds they often seem to lose touch with reality? How many times have we seen individuals we consider to be upright, responsible citizens, who normally personally live within their means, suddenly become spendthrifts with a public purse? What is there about holding elective office that somehow makes it acceptable for politicians to spend more money than we can afford or to run up bills for things they would never think of doing in their personal lives?

The reflexive answer to a budget shortfall always seems to be to raise taxes. Look for something to tax, anything, but whatever you do, don't cut back appears to be the politicians' motto. In the words of Ronald Reagan, "The government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."

The credo of most politicians appears to be: Raise taxes and expand the budget when the economy is healthy and generating more money than government needs, then raise them again to cover the shortfall when revenues decline. But, never curtail spending and never give anything back to the taxpayers if it can possibly be avoided.

Witness the annual fiscal charade that invariably takes place in California. Even with the state facing a massive budget shortfall, the state's legislators continue to receive raises. The Sacramento Bee observed (December 3, 2007), "California pays legislators at least $30,000 more than any other state, but numerous city or county managers, auditors or school superintendents receive far higher paychecks."

Writing in Forbes (9/1/03), Rich Karlgaard noted, "California took in 44% of its revenue from fewer than 10,000 capital gains tax payers in 2000. The state's legislators insisted on basing the budget on what was clearly understood to be a temporary spike in tax revenues. When the easy money flew off, so did the tax receipts."

Bill Leonard, a member of California's State Board of Equalization, observed: "When California raises taxes on people the liberals define as 'wealthy,' the actual collections do not meet expectations. Back in 1991, Governor Wilson bought into the liberal logic for a moment and raised taxes on the upper-income brackets. The following two years, revenues were $1 billion short of forecast each year. Currently, the top one percent of taxpayers in California contributes 40 percent of the state income tax, and the top 10 percent pay 70 percent of the tax... Our tax system has gotten so hyper-progressive that a single taxpayer can affect revenue estimates. Last year a wealthy taxpayer settled his tax liability for $200 million...what is clear is the state's spending level is already overly dependent on a few wealthy individuals gaining financial windfalls, and then paying taxes on them. We are fast running out of Californians who can do this." (The Leonard Letter, May 5, 2008).

Furthermore, "...state spending has soared under Schwarzenegger even faster than it did under his predecessor..." His budget "spends 34% more than when he took office just four years ago. His spending plan was based on the fallacy that revenues would continue to pour into the state's coffers." (ibdeditorials.com, December 17, 2007).

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