The main problem
The main problem here in California, and in the United States is that there are too few people actually paying in to the system and too many taking out. In California we have 10% of the US population but 25% of the welfare cases.
Nationwide we have a huge proportion of people getting Social Security, SSI, government penstions, and military pensions. We also have people on Medicare, Medicaid and Veterans Hospital system. There are too few people paying in and fewer in the future. It was easy to set up all of these systems and promise certain benefits, few actually calculated what would happen in the future, and if they did it was ignored.
We really need to sit down as a nation and decide how much everyone will get, how much they will pay in. Many want to pay nothing in and that includes the rich and those on welfare. Many others want to take out, including those on Social Security and Medicare, without realizing that what they paid in went to someone else, it is gone. They are being supported by those still paying in, they should be nicer and more greatfull to the younger generations.
Probably we will need higher taxes and lower expectations, we will be working beyond 67 years old undoubtedly. We need to look at the rest of the developed world to see what works and what doesn't work. Very likely we will have a national value added tax for health care instead of the way we are paying for it (or not). I though perhaps a BTU tax would be one way to go. With the VAT tax the large consumers would pay more, but everyone would pay in some.
Like I said we need to decide what we expect, do we want libraries, parks, public schools, public transportation, higher education, health care? I would like to see a computer simulation of this, how each factor raises taxes. The LA Times had one for California to see if you could balance the budget. The only way you could do it is to eliminate every program that is possible to eliminate, or raise taxes.
We also need to talk about how many people we want to keep in prison. As long as drug users are kept in there is a cost associated with it.
Martin