Another Federal Bailout?

First the mortgage companies, then the insurers, followed by the banks and the auto companies getting federal bailout money. The federal government, which promises middle and lower class tax cuts, robs from us to pay for these bailouts.

To add insult to injury, many states begin to announce higher taxes on businesses and "the rich" in their states. You get a lot of tough talk from politicians in these states that can't even balance their own books, like California and New York.

It doesn't take a rocket scientist to realize that "the rich" will take their businesses to states with lower or non-existent tax rates like Texas or New Hampshire. Why reside in a state that will punitively tax your business just because it is successful? Of course, it won't take long for the jobs to disappear as well.

California is in such dire staits because in addition to chasing business out of the state with record tax rates, it is unwilling to cut any spending programs whatsoever to balance a budget.
The politicians there are on the verge of creating the first state bankruptcy.

Do you think this federal government will allow that? It would probably be best for the state, so that it can renegotiate all of it's current contracts and cut sacred cow social spending programs advocated and protected by the land of fruits and nuts. But, don't be surprised if California receives federal bailout money to keep it going real soon. In other words, the other 49 states' citizens will have to pay for California's unwillingness to stick to a budget. That is patently unfair.

I have an idea for California to raise money. Have it sell chunks of it's land to adjoining states or to the federal government to form a new state, hopefully one that will be more productive with it's resources. Nevada could be squared off and take Los Angeles. Arizona can take lower California and San Diego. Oregon can buy the northern tier of the state.

California could continue to sell itself until it looks like the District of Columbia with San Francisco at its' core. How much of a budget would it need to keep San Francisco going? Not much, I would hope. Then California would be gone and hopefully its' inefficiencies would become irrelevant. As it is, it's a huge white elephant threatening the cost the rest of the US a fortune.

Then, when New York City gets there, have them sell the whole of upstate New York to form a new state as well and D.C.-ize it as well.