James Pethokoukis

Politics and policy from inside Washington

California gets moody

June 19, 2009

Moody’s is threatening California with a “multi-notch” downgrade of its credit rating. The state is in a deep fix, but necessity is the mother of policy invention. It will be interesting to see what Arnold and legislature do, assuming no rescue from Uncle Sam. The governor’s call for a flat tax might just be the beginning.

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