Fact is as Illinois, Michigan and California morphed from safely Red to safely Blue the fiscal situation in each has become out of control. The equation is common: Wealthy elites+unionized public employees+ indigent browns=destruction of the white middle class.
These guys that are in denial about what has happened to their beautiful state are amazing. I love my state of Texas but it is obvious that we are going down the same dead end road as California......we're just 10-15 years behind. Stosh
You ultra-conservative finance types kill me. Warning of the "creeping socialism" in the US, when the tax rate of the wealthy has declined by two-thirds in the past 40 years. How much lower to you want it to go??? The claim is always that "lower taxes" spurs economic growth for all. But you neglect that that is only true when that taxes are so high as to be punitive, as they were in the US some 40 years ago. The effect when taxes are moderate, like they are today, is negligible. But yet, Dubai, a place that has no personal taxes, needs a bailout: http://ftalphaville.ft.com/blog/2009/02/23/52757/one-emirate-for-all-none-for-one/ Seems as though they are in the same boat as my fair state of CA, yet their government is minuscule. How does this fact square with your argument? Is the fact that the Gini coefficient has continually expanded over the same 40 year period (read: wealth inequality has widened greatly, consistent with capitalism for the rich and by the rich...no matter what you and Joe The Plumber blather about) not enough for you??? I bet, however, you support these massive bank bailouts (bigger than any social spending project in history) to save institutional equity and debtholders at the expense of yours and my great grand children on the basis of the "systemic risk" argument. Big government is okay when it is there to save your butt, though you will never consider returning the favor. "Privatize the profits, socialize the losses" Pleeeeeeeeeeeeeez
Agreed. "CA has high taxes" compared with where? Missouri and Arkansas maybe. But not NYC or Washington DC. Compare apples-to-apples not apples-to-grape nuts!
If things stay on this path, in the not so distant future people will be saying "middle class? whats that?"
You are mistaken. State income tax in NY is 6.85%. In DC, 8.5%. California is higher... a "high tax" state. (Not grape nuts nor any kind of fruit.)
As someone who has paid taxes in both DC and CA, I can tell you all-in income tax is lower in CA. Also remember that NY state tax you quote doesn't include Manhattan city tax...so that 6.85% is a very lowball number. I am talking "what nets to me after I have paid everybody" tax. Not the quoted rates.
Are you saying that in New York, you have a fed income tax, a state income tax, and also a city INCOME tax. Yikes!!!
As do other places. A point (miniscule one... actually it's not even a point worth discussing) is trying to be made that CA's taxes are "not the highest"... The bigger point is that CA takes in a LOT of tax revenue. And in spite of that, they've still got a $40 Billion deficit.