Friday, 25 March 2011

More tax hikes.

In the midst of the "Great Recession", California - following Illinois - is next in line to raise taxes.

Unfortunately, it's not much of a long term solution. With LA pension benefit expenditures to reach 20% of tax intakes by 2015, this is soon to be either followed by more increases, or outright default.

Rising pension and retiree healthcare costs for public safety workers are expected to consume 19% of the city budget within five years (up from 8.7% this year).

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