Posted on 09/03/2006 11:55:38 PM PDT by NormsRevenge
There has been much discussion in recent years of California's tax and business climate—and it has not been very flattering. California owns the dubious title of highest tax bracket in the nation, at 10.3 percent. Even the state's second-highest bracket (9.3 percent), collected on those earning more than $41,500 in taxable income, ranks below only Vermont's 9.5 percent rate. High taxes, onerous regulations, perennial government overspending and multi-billion-dollar budget deficits, and a high cost of living have caused many to question whether it is still worth it to live and do business in California.
Public perception of the Golden State's poor living and business climate has been substantiated by a number of studies. The Tax Foundation's 2006 Tax Freedom Day Report concluded that California has the ninth-highest total tax burden in the nation, and that Californians must work an average of 120 days this year—four days longer than the national average—just to pay off their tax burden.
The Pacific Research Institute's 2004 U.S. Economic Freedom Index analyzed 143 variables in five categories (fiscal, regulatory, welfare spending, government size, and judicial/property rights) to measure states' economic freedom. California ranked 49th overall, surpassing only New York. Among the subcategories, it placed 48th in fiscal, 48th in welfare spending, and dead last in regulatory.
Yet another Tax Foundation study released in February compared the burdens of states' corporate, individual, sales and gross receipts, and unemployment insurance taxes, as well as a wealth index. Once again, California proved lacking, placing 40th overall on the State Business Tax Climate Index. Compare this to neighboring Nevada and Oregon, both of which placed in the top 10 and offer significantly better alternatives for many businesses.
Business owners have certainly taken notice. According to the Nevada Economic Development Partnership, 38 California businesses relocated or expanded to Nevada in FY 2003-04, resulting in 1,500 jobs lost to our eastern neighbor.
Even California's signature motion picture industry is looking for greener pastures. Film productions are moving to other states and Canada, and a recent Film L.A. study reported that television pilot productions are also relocating, costing many jobs and draining local economies, particularly in Los Angeles.
Small business owners are particularly hard hit by California's tax policies. According to the California Taxpayers' Association, the richest 10 percent of earners pay nearly 75 percent of the entire income-tax revenue in the state, and most of these are small-business owners. Thus, under California's backward tax policy, the very entrepreneurs responsible for economic growth and prosperity are being punished the most severely.
Given California's tax-happy political culture, it is no wonder the wealthy and the successful are leaving the state in droves.
Unfortunately, there does not seem to be any relief in sight. Gov. Arnold Schwarzenegger and the Democrat-controlled State Legislature have proven unable to control government growth and spending. Yet, Schwarzenegger proposes $37 billion in infrastructure bonds and his gubernatorial opponent, Phil Angelides, proposes numerous government programs estimated to cost an additional $5 billion to $10 billion.
California's taxes are overly burdensome and are stifling economic growth in the state. Even when they do not drive people and businesses out of the state altogether, they take away resources that would otherwise have been invested in new jobs, new businesses, and better products. If the state does not reverse course, its tax and regulatory policies will continue to bleed its most productive, entrepreneurial residents and its economic growth.
During the early 1990s, high tax rates spawned a mass migration of the wealthy to more friendly environs and led to a fiscal crisis. It appears California is intent upon repeating its costly mistake.
Life in California; a taxing proposition, no matter who is in office.
Kalifornia is becoming a state of "eaters" as productive people wise up and clear out. All you can do is hope that the people moving out are not the people who elect the likes of Boxer et al.
Does anyone have the tax freedom day data by state?
The wealthy have the means to leave. Irritate them and the golden goose takes flight. I left in 2000 for Idaho. That year I was whacked for $70,000 FIT and $19,500 SIT. The cost of living in Pocatello is much lower than San Diego. Taxes are lower too. Freedom from the insane parade of anti-gun laws is a key reason I'll never return.
Here ya go,,
http://www.taxfoundation.org/news/show/52.html
But if they're leaving California, why would they move to Massachusetts?
wow, 1 second apart on the cnn link posting . :-)
It was easier for me to just move North...
From CA to MA?
Well the title of the thread say it's a "Mass Migration".
(No more Olmert! No more Kadima! No more Oslo! )
My wife and I were the first Free State Project signatories to relocate to New Hampshire after it was chosen, and we left San Jose California for the no-income-tax, no-sales-tax climate of New Hampshire, and gave ourselves enough of a raise that she no longer needs to work outside the home.
Property taxes are higher, but we're paying about the same on our 4br-2ba colonial as we were on a 1,100sf ranch in San Jose thanks to a more sane housing market.
While this is about CA., cannot help but notice (AND REMIND ALL) that my (FORMER) home state, Vermont, has the dubious distinction of being NO. 2.
And that, along with my being sick and tired of being one of about only 37 Conservatives in the entire state, is the reason I moved last year.
Growing up in VT in the 50's and 60's was a pleasant experience and VT could have been considered (in today's vernacular) Moderate/Conservative.
Then, as that ol song goes: "Along came Bernie."
When the Socialist Rat-bastard (of course he and his fellow travelers called themselves "Progressives") moved from NYC (in the 70's) it all went down hill from there.
He managed to organize and pressure the State Legislature to pass legislation allowing students to vote (even though they had NOT established residency) and knowing the climate and political bent of our institutions of higher learning, he got himself elected mayor and as the saying goes, the rest is histoire.
The state went downhill, politically, from there including our having to live with Howie (the clown) Dean as our Governor for more years than I care to admit or remember.
Additionally, Vermont had a substantial influx of "flat landers" from CT., MA., NY and NJ--most of which were of the liberal persuasion which helped exacerbate this decline.
A sad and ironic sideline is the fact that many of those who lived in the Southern part of the State, who grew tired of being over-taxed (and yes even liberals tend to feel that way as well) moved to NH, which also used to be a wonderful Conservative State.
That, coupled with all the liberals moving there from Taxachusetts, led to the demise NH as well, as evidenced by the results of the last election.
Sadly, now, ALL of New England (I guess you could say The Northeast) is solidly Blue and those of us Conservatives Cats, who can, are escaping this Hellish Nightmare, which in turn, leaves only more and more Liberal Rats to do with as they wish.
Me, I am now happily ensconced in Virginia and though I still have many friends, relatives and acquaintances, do not have so much as an inkling to go back and visit--its probably much the same feeling that former West Germans had when they escaped over the wall from the East.
The LIBS take their sickne$$ with them wherever they go.
Prop 13 is part of the problem!
Eventually, all that will be left in CA will be Government employees and Illegal Immigrants.
How fitting.
I've done business in CA, and the insanity goes right down to the city council level.
I called on a Heavy Duty Parts distributor who was forced to spend $10,000 for landscaping to expand his business.
The landscaping was completed on a Friday.
When they came in Monday, approx. $7000 of the trees and shrubs had been stolen.
As you might imagine, being a Heavy Duty Truck parts house, the area was not in the best part of town (West Central L.A.).
Which made the landscaping requirement nuts in the first place.
To live and die in L.A.
Any bets that it wasn't the illegals the contractor had hired who stole the plants? Had the owner stipulated that only legal residents be allowed to work on the job, my guess is that the plants would still be there.
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