Monday, December 29, 2008

Highlights of 2008. How a radio show can stop the world's 7th largest economy

Highlights of 2008. Latte Republic's Irresponsible Media Award goes to John Kobylt and Ken Champeau, hosts of the John and Ken Show on KFI AM 640 in LA. The radio talk show hosts have threatened to unseat any Republican who votes for a tax increase.

The state of California is running a budget gap of $1.2 million a day. CNBC author Jane Wells tells readers that the deficit has topped $15 billion, and that the state will be out of money by February, and while the Governor has continued to negotiate with state Democratic leaders, there's still no deal.

Here's why: A radio show.

John Kobylt and Ken Champeau host "The John and Ken Show" on KFI AM640 in Los Angeles.

Kobylt and Champeau told Wells that the radio show has "about a million listeners a week, listeners he and Ken have been able to rally to burn up the phone lines to Sacramento to insist the Legislature not raise taxes."

'Both the governor and the Democrats are proposing, however, to do just that: raise taxes. But any attempt has failed so far. You see, in California, you need a two-thirds majority in Sacramento to raise taxes, which requires a few Republican votes. And the Republicans won't budge. One reason may be that John and Ken have threatened to unseat any Republican who breaks ranks."

Last week, the Democrats introduced a bill that replaced some of the proposed tax increases with fees. (Bills that contain fees only require 50% plus one vote to pass the legislature). The measure passed, but Governor Schwarzenegger is not supporting the measure because he feels the fees are illegal and the bill does not do enough to stimulate the economy.

Expect a fireworks display when Republican legislators are forced to deal with the collapse of the state budget. Perhaps shutting down California state government is preferable to raising taxes? Somehow, I don't think that's going to get anyone re-elected.

Personally, I'm looking forward to reviewing Republican proposals for repairing the California state budget without raising taxes.

The entire article can be read here:

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