There's a limited amount a city or state can raise taxes. If they're too high, wealthy people will just leave. It's not hard to move if you have money. It does screw over the poor people left behind who now have high taxes and no tax base to pay for government services.

Reducing the pension burden is exactly Arnold and others are trying to do. The result of that is that some people are not going to get the pensions they thought they were. That sucks, but it's better than dissolving the government altogether.

"Raise taxes and meet your obligations" And watch revenue and job generating companies move to locations with lower overhead making the situation even worse. It's not so simple as just raising taxes. For every action, there's an equal and opposite reaction.

> Raise taxes and meet your obligations

You mean steal money from other people to pay for promises they had no say in making.

That's what's fundamentally unjust about government pensions: I'm being forced to pay for promises made before I was even old enough to vote.