Posted on 05/10/2015 6:13:26 PM PDT by artichokegrower
Placing a tax on business services in California has the potential to raise an additional $122.6 billion annually for state and local governments, according to a recent Board of Equalization study. A services tax could become a reality if Senate Bill 8 is approved by the Legislature and signed by Gov. Jerry Brown.
(Excerpt) Read more at calwatchdog.com ...
Many of the products that are "farmed" out to other countries (not just China) are done so because otherwise, the cost to produce it here for shipping overseas is uncompetitive. Take beer for instance: Budweiser operates between 9 and 12 breweries overseas. The cost to per bottle of beer to make it in the US and then ship it overseas isn't going to happen. So rather than lose that market, Anheuser-Busch invested in plants abroad.
Its actually no different than foreign car companies investing here in the US by building plants and using American labor to build "foreign" cars. Believe it or not, there are studies out there that the US is actually a net IMPORTER of jobs.
The problems many people have when it comes to products made abroad (with low-cost labor), shipped here and sold in Walmart, Target, K-Mart etc., is that our government has over-regulated and over-taxed US businesses. What fool (would-be entrepreneur) would invest their hard-earned money into a company knowing that half of all businesses fail in the first year. And, if you are lucky enough to make a go of it, Uncle Sam wants 35%. Then you have to deal with the bureaucratic red tape, environmental regulations, labor unions, disgruntled employee lawsuits, etc. I could go on and on.
You have to go no further than what was posted earlier today on what's going on in California. They want to tax the service industries $122 billion PER YEAR!!! Anyway, I have wanted to start a business myself, but after doing my homework here in New Jersey, no thanks. I'll invest that money into the stock market instead.
53.5% income tax plus a 10% sales tax. That close to two-thirds of your income (at $70,000 self-employed) going to the government. It's incredible.
Socialism works well until you run out of other people’s money.
California as a place is very nice. It’s the people living there that are ruining it.
If these pols had any sense of decency they would impose sales taxes on newspapers, movie tickets and TV commercials.
Thars Feudalism in that thar Upward Mobility Act! California is truly the land of Nuts!
This reminds me of something I have been wondering. Is there a chart somewhere showing how much each state pays into federal taxes vs how much they get back?
I don’t have a problem with companies starting up operation overseas if their products will be sold in those markets. That makes sense, and I don’t see this as a direct competition with our labor force.
I continue to state that if the choice is between paying more for a product so that my neighbor can have a job, I think it’s much more healthy that person have a job.
Can you imagine the tax base we are passing up with 90 million people out of work?
Instead of them working and paying taxes local, regional, state, and federal, they actually get government welfare or other services.
Thus they not only don’t pay in, but many of them also get paid by the government.
How is this good for us?
I do not buy the idea that we’re doing the right thing, and I haven’t bought into it since the mid 90s when it became crystal clear what was going to happen in time.
Here we are. It happened. I still have folks trying to tell me it really didn’t.
It did.
If 90 million more people were working, do you think we could pay down the federal debt? Do you think we could actually have a tax cut spring more economic growth?
We’ve screwed ourselves, and created a new global threat at the same time by our stupidity.
IIRC California right now gets 50% of its state income tax revenue from just 150,000 people. In a state with 30M+ residents. This will not end well.
I’m sure all the businesses that move out of California will send that crazy old man Jerry Brown postcards from Arizona, Nevada, Texas, Florida, Georgia, North Carolina Utah, etc. and tell Brown to stuff it.
A few times the subject of taxes came up on a tech forum called spiceworks.
Apparently good liberals run it.
Within a few minutes of me mentioning anything like tax cuts, keeping more of what one earns, flat or fair tax, or any other heresy, an open topic goes to instant closed and moderator allowing access.
Other people can use every four letter word on multiple replies and those stay open pretty much.
I agree with this, but the system isn't in place to turn things around. With the complicit media, the democrats have rigged the game to buy votes with taxpayer money. Promise the slackers a free ride; bring in hoards of illegals and give them driver's licenses and social security numbers and they get to vote for daddy democrat.
Don't forget the punish the rich mantra, so that jealous underachievers vote democrat. Let's make sure energy costs "necessarily skyrocket" in the name of saving the planet, so we can confiscate more money from the producers of society, to give it away to the dependent class, and to the political supports. The system is so slanted against making a go of it, until someone is elected and makes the systemic changes, get used to 90+ million (plus legal and illegal immigrants added each year) people being unemployed.
With stuff like coming from the granola heads in Cali does Texas even need to advertise there anymore? The idea of getting away while you still can now sells itself.
Oh yeah. This wont cripple business more there.
they nevr fsctor j to their estimates the reduction in use of whatever they are taxing, and b/c of this never bring in the tax revenue they estimate.
They do it deliberately.
They trying to emulate detroit?
Thanks Gordon. I think your points are rather reasoned there.
The government needs to telegraph to business that it’s going to get it’s fingers out of their business.
Incentivizing businesses to return and employ U. S. Citizens is the way to go.
I think it could happen a lot faster than we think.
I favor the free enterprise system, but I do think there is a point where that free enterprise becomes severely destructive when markets are not level, as in China vs the U. S.
I can’t see what happened between China and the U. S. to be anything other than destructive to the max. On top of it all, we are financing China’s global treachery.
Granholm tried (and failed) to instantiate that in MI as the ‘blame my predecessor’ gig was running thin and budgeting was being increasingly impossible late in her second term.
My ‘back of the envelope’ ciphering suggest that this figure is about 5.5 of California’s “gdp”. Considering the huge bite the state already takes, the amount is stunning.
CAN we laugh now, or later..?
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