Professor Elam

Since income taxes are indexed to the CPI, when we have deflation, income taxes in California can actually rise!  Yep, another horror story in the world's eighth largest economy.  

Deflation the collapse of prices is the opposite of inflation.  Real estate prices are collapsing, rents too,

there will be no inflation until the deflation ends.   Bernake has been printing and borrowing money trying to cause some inflation. So far it has not worked. 

Nevada is now running ads urging distressed Californians to flee their state. Many have.