California leads the way on road to financial ruin

SJ Mercury News ^ | 12/26/02 | Peter A. Brown - Orlando Sentinel

[NormsRevenge]

WERE California a private business, it would be in bankruptcy court and its leaders would be on their way to jail.

They should be.

California's mess is a capital political crime that more than just tarnishes the Golden State.

The Sacramento gang has created a fiscal mess more than 20 times worse than anything Congress could manufacture.

[NormsRevenge]

A letter to the editor said it quite well..

WHERE was all this outrage about the state deficit before Gov. Gray Davis was re-elected? Here is a man who signed exorbitant contracts with power producers before giving consumer conservation a chance to work (and it did work), beginning the plunge into a serious deficit. He is the man who was repeatedly accused of showing favoritism to campaign contributors. Now, after the election and the ``surprise'' announcement is made that the deficit is even worse than originally thought, people are expressing outrage?

Anyone with any common sense should have seen this coming. It is disgusting that the budget consequences were hushed up until the election was over, and now we're being warned about tax increases.

I suggest the people of California send a strong message to the Legislature and governor: We want the state to live within its means like we have to do. That means tightening the belt when times get tough, and saving money when times are good. There is no endless supply of money in this state, and until our government realizes it and changes its philosophy and priorities, the situation will continue to degrade.

Mark Thomen
San Jose

[John Jorsett]

Other mega-states, such as Florida and Texas, with less-generous government programs, proportionately smaller work forces and no income tax, are much better off. Their income is based on sales taxes, which might not be progressive, but their revenues have been more reliable.

And the Florida sales tax is 6%, and Texas 6.25% as opposed to Califonia's 7.25% plus a max 9.3% income tax rate. Plus gasoline sales tax, capital gains tax, yada yada yada.

[goldstategop]

Most of the country is thankful it isn't in the mess that California's in and they don't feel like they're obliged to help clean it up.

[goldstategop]

Here the liberals are dreaming up new ways to pick the taxpayers' pockets. I kid you not.

[shadowman99]

I'm in Nebraska, but just have to wonder why you don't recall Davis. I'm sure the California constitution has some means of unseating corrupt/incompetent governors. Are there not enough upset people in CA for a petition drive to work?

[gitmo]

It eventually has to crash, and it's not going to be pretty. I hope the Federal government resists the temptation to bail them out.

[goldstategop]

I don't think so. I prefer to let Californians stew in their own juices since they choose to reelect the Dufus. By the way I sat this election here out and I'm glad it was the right decision.

[MistrX]

Cal sales tax is 8.25%. I am definitely leaving the state upon retirement.

[Ernest_at_the_Beach]

Good catch!

calgov2002:

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[goldstategop]

That would be good. I don't see that President Bush needs California as much as California needs him. There are states the President could do more for and they'd be grateful to help him get re-elected but not the kind of folks on the Left Coast here who have absolutely no use for him and who would rather be beggars than admit his policies actually work.

[Dog Gone]

I am definitely leaving the state upon retirement.

I'd like to consider returning to California to retire. I love the N. Californian coastal region.

But politics and finances rule it out. I'm not going to voluntarily turn over my retirement income to the hopeless liberals who are ruining that state.

[Hildy]

I heard a rumor that their thinking of putting a sales tax on home sales. Any truth, you think?

[BIGZ]

Starting Jan. 1, 03 property not your primary residence will be taxed at a rate of 3.25%, I believe.

This was kept very quiet during the election but the ka-ka is about to hit the fan as Ca. sellers are hit with this tax.

To put this into terms that all can understand, if you sell a house for $250,000 your tax, taken out of escrow, will be $8,125.

The Commies have arrived.

[Hildy]

This is only for investment, income or second homes?

[.38sw]

I believe the tax on second homes and investment property you are referring to is a withholding to make sure that the capital gains tax is paid. When you file your taxes, you would get it back if no capital gains tax is due, or if you overpaid. The state wants its money up front, and doesn't trust you to pay.

[Russell Scott]

Everytime a Dim opens their mouth to attack Republican economic policy, the standard response should be, "So California is the Democrats blueprint for their economic policy?"

[John Jorsett]

Cal sales tax is 8.25%. I am definitely leaving the state upon retirement.

The basic sales tax in CA is 7.25%. There are special districts in some areas, which sends it as high 8.25% in some places (Los Angeles for one).

Luckily for your retirement, CA was thwarted in its schemes to tax your retirement benefits even if you moved out. At one time they were arguing that "they earned their retirement while working in the state, so we're entitled to tax it regardless of where they go afterward." The courts slapped that one down, thank God. It certainly shows where CA's head is at when it comes to hoovering every last dime out of our pockets.

[John Jorsett]

Starting Jan. 1, 03 property not your primary residence will be taxed at a rate of 3.25%, I believe.

I think this is the witholding of potential capital-gains taxes for non-primary residences that you're thinking of. It's supposed to be for purposes of collecting the capital gains taxes on any profits from the sale, and not a new tax unto itself. It's also a windfal for the state, in that if there are no capital gains, the state still gets free use of the money until you file your tax return to get the refund.

[John Jorsett]

I'm in Nebraska, but just have to wonder why you don't recall Davis. I'm sure the California constitution has some means of unseating corrupt/incompetent governors.

CA law says you can't start a recall until the politician has been in office for at least 6 months. Since Davis was just reelected, we're stuck with him until at least June. As he's shown by his past actions, he can do a lot of damage in that amount of time, particularly with a Democrat legislature cranking out legislation like maniacs (something like 163 bills introduced in the couple of December days they were back in session right after the election).