They put all their eggs in one basket, and then that basket fell off the back of the truck.
Nearly half of California’s income taxes before the recession came from the top 1% of earners: households that took in more than $490,000 a year. High earners, it turns out, have especially volatile incomes—their earnings fell by more than twice as much as the rest of the population’s during the recession. When they crashed, they took California’s finances down with them.
Of course, we could just go with the Michael Moore method: take all that wealth away from the rich, because it’s a national resource. That’ll solve our deficit problems. That’ll keep our entitlements alive another year.
And then, the year after that, we’ll…
Help me out, here. What will we do?
UPDATE - You gotta watch those eggs. You never know what they’re gonna do.