The news came out this week from California’s non-partisan Legislative Analyst that the budget deficit in the Bronze Golden State is now $17 billion, up from $15.7 billion (and the $9 billion it was noted as just a couple of weeks ago). So what are the Democrats proposing? Tax increases.
I keep harping on the same things, because, well, the Democrats (and Governor Brown) are treating a symptom of the problem, not the problem itself. California continues to lose valuable members of the state: People who create jobs and bring tax revenues. They’re being replaced by people who don’t; the state has 12% of the nation’s population but 33% of its welfare recipients.
Jerry Brown also said that it’s full speed ahead for the high-speed rail project. Good luck finding the $55.7 billion more you need. As the Wall Street Journal noted,
Transportation experts warn that the 500-mile bullet train from San Francisco to Los Angeles could cost more than $100 billion, though the Governor pegs the price at a mere $68 billion. The state has $12.3 billion in pocket, $9 billion from the state and $3.3 billion from the feds, but Mr. Brown hasn’t a clue where he’ll get the rest. Maybe he’s hoping Facebook will buy the train, though he’ll have a hard time convincing Mark Zuckerberg that it’s worth 100 Instagrams.
What will increased taxes accomplish? More people like me, fleeing California. Joseph Vranich, a business relocation coach from my old homestead of Irvine, told Advisorone, “Every client I’ve ever served has saved various taxes by moving out of [California].” Here’s more:
“The No. 1 reason why a company leaves varies depending on whether they are in a profitable or unprofitable position,” Vranich says. “If you are profitable, the No. 1 reason is high taxes. If you are unprofitable, the No. 1 reason is the regulatory burden,” he says, noting that fees, fines and compliance costs are so significant that their elimination could be all that is needed to bring a company to profitability.
I met former California Assemblyman Chuck DeVore (another former Irvinite) at the Exchange Club of Irvine. Mr. DeVore now resides in Texas.
My divorce from California was long in the making: call it a case of irreconcilable differences. I constantly warned that the nation’s biggest state was spending too much, that its meddlesome regulatory climate was choking off job creation, and that its “green” energy policies were driving out manufacturing. I was called a nag and ignored…
As a share of its economic output, California spends about 46 percent more on state and local government than does Texas.
There’s much more in the article — it’s well worth your time.
I’ll leave you with three links to op-eds that spotlight the reality of socialism (for that’s what California has become):
As Margaret Thatcher said, the problem with Socialism… as well as California’s model… (perhaps I repeat myself) is that at some point, you run out of other people’s money.
That comes from Jim Geraghty at the Campaign Spot. You may also want to read Steven Greenhut: Jerry Brown a dishonest bore and Mark Landsbaum: Don’t buy Jerry Brown’s poor-mouthing.
