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Breaking Bad: California vs. the Other States

Breaking Bad: California vs. the Other States

by Richard Rider, Chairman, San Diego Tax Fighters

Version 1.71 Revised 21 August, 2010

Updated version online at: www.RiderBlog.NotLong.com

Here’s a depressing but documented comparison of California taxes and economic climate with the rest of the states. The news is breaking bad, and getting worse (I keep updating this fact sheet):

California has the 3rd worst state income tax in the nation. 9.55% tax bracket starts at $46,349 for people filing as individuals. 10.55% tax starts at $1,000,000
http://www.taxfoundation.org/files/bp59_es.pdf

By far the highest state sales tax rate in the nation. 8.25%. 7% is next highest (does not include local sales taxes)

http://www.taxfoundation.org/files/bp59.pdf Table #15

California corporate income tax rate (8.84%) is the highest west of the Mississippi (our economic competitors) except for Alaska.

http://www.taxfoundation.org/files/bp59.pdf Table #8 -- we are 9th highest nationwide.

California’s 2010 Business Tax Climate ranks 48th in the nation.

http://www.taxfoundation.org/files/bp59_es.pdf

Fourth highest capital gains tax 9.55% http://www.thereibrain.com/realestate-blog/capital-gains-tax-rates-state-by-state/109/

Highest gasoline tax (averaging 67.4 cents/gallon) in the nation, 4 cents above second place Hawaii (July, 2010). http://www.api.org/statistics/fueltaxes/ (also highest diesel tax)

California is ranked 14th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But CA property taxes per home were the 10th highest in the nation in 2008.

http://www.taxfoundation.org/taxdata/show/251.html and http://www.taxfoundation.org/taxdata/show/1913.html

One of the highest state vehicle license car taxes. 1.15% per year on value of vehicle, up from 0.65% in 2008.

http://tinyurl.com/lrvmtd

California’s 2010 “Tax Freedom Day” (the day the average taxpayer stops working for government and starts working for oneself) is the 7th worst date in the nation – up from 28th worst in 1994, but down from 4th worst last year CA “improved” only because of our state’s soaring unemployment rate – the new tax dodge!

http://www.taxfoundation.org/research/show/387.html

In 2009, 24 states raised their taxes at least 1% to collect $28.6 billion. California’s taxes went up about $11 billion – thus we were responsible for about 38.5% of all the state tax increases in the nation. http://tinyurl.com/2009-CA-Tax-Increase-rank

California has the 3rd highest unemployment rate in the nation. (July, 2010) 12.3%. National unemployment rate 9.5%.

http://www.bls.gov/news.release/laus.nr0.htm

California needlessly licenses more occupations than any state – 177. Second worst state is Connecticut at 155. The average for the states is 92.

http://cssrc.us/publications.aspx?id=7707

For the 2007-08 school year, the Los Angeles Unified School District spent $$29,780 per student. The district also has the country’s second lowest graduation rate of 40.6%. http://www.calwatchdog.com/2010/08/20/lausd-spends-30k-per-student/

CA public school teachers the 2nd highest paid in the nation after NY. The average 2008-09 CA educator salary was $69,093 – 7.25% higher than the previous year’s $64,424 average.

http://www.nea.org/assets/docs/010rankings.pdf Page 21, table C-18

1 in 5 in Los Angeles County receiving public aid. http://www.latimes.com/news/local/la-me-welfare22-2009feb22,0,4377048.story

California has 12% of the nation’s population, but 36% of the country’s TANF (“Temporary” Assistance for Needy Families) welfare recipients – more than the next 7 states combined. Unlike other states, this “temporary” assistance becomes much more permanent in CA.

http://weblog.signonsandiego.com/weblogs/afb/archives/034662.html

California prison guards highest paid in the nation. http://www.caltax.org/caltaxletter/2008/101708_fraud1.htm


California is the worst ranked state for tax administration – another anti-business factor.

http://www.sacbee.com/static/weblogs/capitolalertlatest/2010/03/cal-rated-worst.html

California now has the lowest bond ratings of any state, edging out Louisiana.

http://tinyurl.com/CA-worst-bond-rating

As of 2008, California ranks 46th worst in “lawsuit climate.” http://tinyurl.com/CA-44th-lawsuits

America’s top 600 CEO’s rank California “the worst place in which to do business” for the fifth straight year (3/2010). But here’s the interesting part – they think California is a great state to live (primarily for the great climate) – they just won’t bring their businesses here because of the oppressive tax and regulatory climate.

Consider this quote from the survey (a conclusion reflected in the rankings of the characteristics of the state): “California has huge advantages with its size, quality of work force, particularly in high tech, as well as the quality of life and climate advantages of the state. However, it is an absolute regulatory and tax disaster.”

http://tinyurl.com/CEO-states-rank-2010

California, a destitute state, still gives away college education at fire sale prices. Our community college tuition is by far the lowest in the nation. How low? Nationwide, the average community college tuition is almost four times higher than California CC’s. This ridiculously low tuition devalues education to students – resulting in a 30+% drop rate for class completion. In addition, 2/3 of California CC students pay no tuition at all – filling out a simple unverified “hardship” form that exempts them from any tuition payment, or receiving grants and tax credits for their full tuition.

http://tinyurl.com/ygqz9ls

On top of that, California offers thousands of absolutely free adult continuing education classes – a sop to the upper middle class. In San Diego, over 1,000 classes for everything from baking pastries to ballroom dancing are offered totally at taxpayer expense. http://www.sdce.edu

Protests about increased UC student fees ignore one crucial point -- all poor and most middle class students don't pay the “fees” (our state’s euphemism for tuition)!  There are no fees for California families with under $70K income. Moreover, Pell Grants and federal tuition tax credits cover the total 2009-10 fee increases for nearly 3/4 of all undergraduates with household incomes below $180K.

http://www.universityofcalifornia.edu/blueandgold/ and

www.universityofcalifornia.edu/news/article/22415

California residential electricity costs an average of 37.2% more than the national average (far higher in San Diego County). For industrial use, CA electricity is 44.6% higher than the national average (December, 2009).

http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_a.html

It costs 38% more to build solar panels in California than in Tennessee – which is why European corporations have invested $2.3 billion in two Tennessee manufacturing plants to build solar panels for our state.

http://tinyurl.com/llussb

Consider California’s net domestic migration (migration between states). From April, 2000 through June, 2008 (8 years, 2 months) California has lost a NET 1.4 million people. The departures slowed in 2008 only because people couldn’t sell their homes.

http://www.mdp.state.md.us/msdc/Pop_estimate/Estimate_08/table5.pdf

These are not welfare kings and queens departing. They are the young, the educated, the productive, the ambitious, the wealthy (such as Tiger Woods), and retirees seeking to make their pensions provide more bang for the buck. The irony is that a disproportionate number of these seniors are retired state and local government employees fleeing the state that provides them with their opulent pensions – in order to avoid the high taxes that these same employees pushed so hard through their unions.

As taxes rise and jobs disappear, we lose our tax base, continuing California’s state and local fiscal death spiral. This downward spiral must stop NOW.


Updated online at: http://www.open.salon.com/blog/Richard_Rider

Phone: 858-530-3027

NOTE: If you would like to receive more of this type of information and analysis, just drop me an email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

To see the latest version of this “Breaking Bad” column, plus other goodies, go to my blog at http://www.open.salon.com/blog/Richard_Rider. This factsheet also is available as a 2 page Word file for printing.

 

 

How Congress Can Help The Economy

Last year's effort to stimulate the economy was effective only in saving state and local government jobs. Meanwhile, the private sector has lost 5.9 million jobs since 2007. http://www.investors.com/NewsAndAnalysis/Article.aspx?id=518614

And unemployment has risen to 10% http://www.bls.gov/news.release/empsit.nr0.htm

Try something new. Stimulate the economy by cutting the cost of federal regulations, which will exceed $1 trillion this year. http://cei.org/cei_files/fm/active/0/Wayne%20Crews%20-%2010,000%20Commandments%202009.pdf

That would pay for 20 million $50,000-a-year jobs!

Creating new jobs is easy -- just make it simpler to do business in America. The economy crashed because of Federal Reserve credit manipulations and excessive risk-taking encouraged by government polices. It was too much regulation and political meddling that led to the problem, NOT a lack of regulation.

Instead of piling more burdens on top of those you've already created, please do this instead . . .

  • make it less costly for businesses to comply with the tax laws, by simplifying them
  • end Sarbanes-Oxley, which burdens companies while doing little to reduce fraud http://cei.org/articles/2010/01/17/sarbox-might-be-coming-end
  • regulate financial institutions through consumer choice, and by allowing bad institutions to fail (no more bailouts!)

Most importantly . . . start following the Constitution's Commerce clause!

The Clause reads . . . "(The Congress shall have power) To regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes."

The rule tells you that you can only regulate goods and services that cross state lines. You CANNOT regulate business activities that happen WITHIN a state. Congress must therefore stop . . .

  • regulating the terms, conditions, and wages of employment
  • regulating goods and services sold locally

By limiting the reach of Congressional regulation to *interstate* commerce, Congress will create more freedom for . . .

  • the unemployed to find work
  • entrepreneurs to start new businesses
  • small retail business owners to compete
  • farmers to serve local markets

What you've done so far has violated the Constitution, and it didn't work. Do something that will work. Obey the Constitution. The people will take care of the rest.

 

My New Year's Resolutions

News - Latest

Dear Friend of Liberty,

I resolve to persevere in the struggle for freedom that many Americans have undertaken tirelessly, and in some cases have given their lives for.

I resolve to vote for Libertarian candidates whenever I can.

I resolve to keep reminding people that every vote for a Libertarian makes a difference.

I resolve to thank Libertarians who amplify their voice for liberty by running for office.

I resolve to congratulate Libertarian candidates who win their races, and thank Libertarian candidates who did not win but helped to spread the Libertarian message and to lay the groundwork for future Libertarian wins.

I resolve to thank Libertarian volunteers who help the Libertarian Party and our candidates in whatever ways they can.

I resolve not to forget that Republicans voted for the banker bailouts and Medicare expansion, and that Democrats voted for the Patriot Act and the Iraq War.

I resolve not to be fooled by "independent" organizations who say they want to "take back government for the people," but who really just want to use government power for their own purposes.

I resolve to keep the Libertarian Party door open for those who have worked through other organizations to promote liberty, but decided they might get a bigger bang for their buck working through the Libertarian Party.

I resolve to contribute financially to the National LP, and to at least one state and county affiliate, and to at least one Libertarian Party candidate.

Sincerely,

Wes Benedict
Executive Director
Libertarian National Committee

P.S. If you have not yet become a member of the Libertarian Party and wish to do so, please click here and join the only political party dedicated to free markets and civil liberties. If you need to renew, please click here. If you would like to make a contribution separate from membership, please click here.

GET INVOLVED!
   

Libertarians release top 10 disasters of 2009 Obama administration

News - Latest

Note similarities to previous administration

Top 10 disasters of the 2009 Obama administration (in no particular order):

1. Cash for Clunkers
2. War escalation in Afghanistan
3. Giant government health care expansion bill
4. Post office loses money hand over fist
5. Stimulus package
6. Expansion of "state secrets" doctrine
7. Big increase in unemployment
8. "Bailout" Geithner as Treasury Secretary
9. Skyrocketing federal spending
10. Huge federal deficits

Top 10 disasters of the 2001-2008 Bush administration:

1. Cash for Car Companies
2. War in Iraq
3. Giant Medicare expansion bill
4. Post office loses money hand over fist
5. Stimulus "rebate" checks
6. PATRIOT Act
7. Big increase in unemployment
8. "Bailout" Paulson as Treasury Secretary
9. Skyrocketing federal spending
10. Huge federal deficits

Wes Benedict, Libertarian Party Executive Director, commented, "Republicans and Democrats keep expanding government and creating more and more problems. We're encouraging as many Libertarians as possible to run for Congress in 2010. In Texas, the state with the earliest filing deadline, Libertarians have already filed for 31 of 32 Congressional seats."

For more information, or to arrange an interview, call LP executive director Wes Benedict at 202-333-0008 ext. 222.

The LP is America's third-largest political party, founded in 1971. The Libertarian Party stands for free markets and civil liberties. You can find more information on the Libertarian Party at our website.

Contact: Wes Benedict, Executive Director
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Phone: 202-333-0008 ext. 222

 

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Read more: Welcome to Dekker for Congress!

   

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