Comments on: California Taxes Going Up

By: David N

David N — Mon, 03 Nov 2008 13:50:25 +0000

If people don’t like the taxes it takes to stay in California, then they should leave. Ooops, they are! California is loosing its middle and upper middle class at the rate of about 200,000 per year with $14.4 billion in income. These are being replaced by lower skilled immigrants (many illegal). These have about $9 billion in income. So, each year the state is loosing about $5 billion in personal revenue. And, since the state takes a little over 10% in taxes, this means about $500 million permanent reduction in tax revenue per year (and it is cummulative). And, this has been going on for years. Is it any surprize that the state is running about a $15 billion/year deficit? Guess what? With the continued flight of the middle and upper middle class this is only going to get worse. So, raise those taxes. But, realize this, all you do is reduce the tax base so the tax revenue actually goes down as your raise the rates.

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By: Kurt Brouwer

Kurt Brouwer — Sun, 24 Aug 2008 04:35:04 +0000

Bob — Great point. Your district has done a good now and now the legislature wants to take from your district to enable others. We see this same type of fiscal behavior from government in many areas, but more recently in the financial and home markets. Prudent companies don’t need bailouts such as Bear Stearns got. Same with prudent homeowners. It’s a sad, but all too common, tale.

By: Bob F.

Bob F. — Fri, 22 Aug 2008 16:02:41 +0000

I am an elected Director for a special fire protection district in San Diego County; we have not raised fees, taxes or special assessments since as long as anyone can remember, and have carefully saved our revenue to build reserves for much needed projects, such as a new firehouse. These reserves are now at risk while the Legislature schemes about over riding Prop 1A so they can “borrow” from the reserves of local entities to make up their deficit. The result - our fiscally prudent and taxpayer sensitive district may have to pay the price of the irresponsible State politicians which only think about taxing other people for politically inspired programs their supporters want. Meanwhile, our residents are cheated out of the infrastructure they have already paid for and deserve.

By: Kurt Brouwer

Kurt Brouwer — Thu, 21 Aug 2008 18:28:05 +0000

Brad — Glad to see you back. When enrollment is down, the schools just keep spending. A while back, San Francisco issued a bond — $120 million if memory serves — for school construction and repairs. It came out several years later that all the money had been spent, but almost none went to school repairs or construction. Where did it go? No one is quite sure.

By: Kurt Brouwer

Kurt Brouwer — Thu, 21 Aug 2008 18:25:30 +0000

Rebecca — Good points. Californians don’t like to approve new taxes. From the post, I think it’s clear that we are already taxed higher than most other states. Yet, lots of new taxes are coming. And, as you pointed out, issuing bonds just defers the date at which new revenues or reduced spending will be required.

By: Brad S

Brad S — Thu, 21 Aug 2008 16:23:30 +0000

LA Unified Schools should be forced to explain why a school construction bond is necessary when that district has lost 60000 students since the 2003-04 school year. The LA Community College district should be asked the same question when their own enrollment is expected to level off in the next 3-4 years due to those same smaller classes from LA Unified.

In fact, every political subdivision in California should be asked why it is necessary to raise every levy they have when it’s fairly obvious from out-migration data that young families don’t necessarily have to live in California. After all, CO, AZ, TX, the entire South, the entire Great Plains, even the Pacific NW, are ALL easier on the pocketbook, and less heavy-handed on the regulatory burden, than the Golden State.

By: Rebecca Wilder

Rebecca Wilder — Thu, 21 Aug 2008 13:47:40 +0000

California is a state that sure likes to spend, but doesn’t like to tax. I was living in Long Beach during the election where voters backed $42.7 billion worth of public works bonds in the election. I couldn’t believe it - generations to come will be paying for new roads that will have long since been repaved.

Interesting that Californians are so bent against offshore drilling. Much of their budget problems will likely be solved just by the inflow of new corporate profit taxes related growth in the drilling sector.