The real cause of the state budget deficit (Sacramento: low income, sales)

[CA4Now]

Interesting that one usually hears the opposite of this; that CA is not a business-friendly state. What do you think?
California budget: Corporate welfare is real root cause of California's budget deficit, Michael Hiltzik says - latimes.com

[mateo45]

Originally Posted by CA4Now

Interesting that one usually hears the opposite of this; that CA is not a business-friendly state. What do you think?
California budget: Corporate welfare is real root cause of California's budget deficit, Michael Hiltzik says - latimes.com

And apparently "Hi-Tech" also doesn't share the attitude that Cali is "not business-friendly".

Of the Top 10 U.S. and Canadian High-Performing Tech Centers, at least 4 of them are located in California (or 5, if you consider "Baja" as "unofficially" part of the state).

And BTW, for all their talk re: the need to make Cali more "business-friendly", note that both Meg Whitman and Carly Fiorina profited quite handsomely from it themselves.

North America’s High Tech Economy / the-geography-knowledge-based-industries (http://www.newgeography.com/content/00822-north-america’s-high-tech-economy-the-geography-knowledge-based-industries - broken link)

[Ultralight]

Originally Posted by mateo45

And apparently "Hi-Tech" also doesn't share the attitude that Cali is "not business-friendly".

Of the Top 10 U.S. and Canadian High-Performing Tech Centers, at least 4 of them are located in California (or 5, if you consider "Baja" as "unofficially" part of the state).

And BTW, for all their talk re: the need to make Cali more "business-friendly", note that both Meg Whitman and Carly Fiorina profited quite handsomely from it themselves.

North America’s High Tech Economy / the-geography-knowledge-based-industries (http://www.newgeography.com/content/00822-north-america’s-high-tech-economy-the-geography-knowledge-based-industries - broken link)

With Californias sky high revenue reducing anti entreprenurial and regressive sales taxes levied on and
burderning buisnesses and hindering them from growth Californias advantage in the high tech economy is vanishing just as fast as its budget deficit grows.

[mateo45]

Originally Posted by Ultralight

With Californias sky high revenue reducing anti entreprenurial and regressive sales taxes levied on and
burderning buisnesses and hindering them from growth Californias advantage in the high tech economy is vanishing just as fast as its budget deficit grows.

Have any proof of that "opinion" (or is that all it is)?

And BTW, speaking of "knowledge-based industries", your computer has a feature called "spellcheck"....

[Social Democrat]

This guy has never met a tax he didn't like. He cries about the injustice of reducing eliminating welfare etc. but gives no thought to those he would levy more taxes on and that would be about everyone in the state. This guy slams tax breaks for big business which everyone gets real excited about but left to him we all would be paying more taxes. State spending needs to be reduced along with eliminating fraud and wasteful spending our politicians are responsible for. He wants to make big business the boogeyman but the real ones reside in Sacramento.

[hoffdano]

The single most impactful thing that can happen in California is to reduce unemployment.

Employed people pay taxes.
They buy things that generate sales taxes.
They don't draw unemployment or other social services which costs CA $$

I don't have a magic formula for this. But the legislature really, really, needs to test every program and idea against the impact to employment.

[KC6ZLV]

As the previous poster mentioned, employed people pay taxes. However, our tax system is also set up in a way where people with lower incomes pay nothing after they have a few kids, at which point they become an expense. What this leads to is not enough people paying taxes. Taxes should be reformed in a manner that lower taxes other than sales taxes, and sales taxes increased on non-essential items. That way, if Joe Sixpack with three kids, who complains about being poor, decides he has enough money for a new television, he contributes funding his children's education. There are many other things contributing to the problem. Everyone things they are entitled to $$ for every problem they have. That must go away. It doesn't mean elimination of essential social programs. It means we need to figure out what isn't really necessary, and what is excessive.

[Ultralight]

Originally Posted by KC6ZLV

As the previous poster mentioned, employed people pay taxes. However, our tax system is also set up in a way where people with lower incomes pay nothing after they have a few kids, at which point they become an expense. What this leads to is not enough people paying taxes. Taxes should be reformed in a manner that lower taxes other than sales taxes, and sales taxes increased on non-essential items. That way, if Joe Sixpack with three kids, who complains about being poor, decides he has enough money for a new television, he contributes funding his children's education. There are many other things contributing to the problem. Everyone things they are entitled to $$ for every problem they have. That must go away. It doesn't mean elimination of essential social programs. It means we need to figure out what isn't really necessary, and what is excessive.

The us tax system is regressive low income couples pay more in in tax relative to their income than higher earners if sales local and state taxes ar counted in

[Ultralight]

Originally Posted by Social Democrat

This guy has never met a tax he didn't like. He cries about the injustice of reducing eliminating welfare etc. but gives no thought to those he would levy more taxes on and that would be about everyone in the state. This guy slams tax breaks for big business which everyone gets real excited about but left to him we all would be paying more taxes. State spending needs to be reduced along with eliminating fraud and wasteful spending our politicians are responsible for. He wants to make big business the boogeyman but the real ones reside in Sacramento.

State spending in California has been cutt to the bone during the last five years wich has lead to higher budget defecits and shrinking revenues.
State spending stimulates private economic activity through agreggate demand.

[CA4Now]

Originally Posted by Social Democrat

This guy has never met a tax he didn't like. State spending needs to be reduced along with eliminating fraud and wasteful spending our politicians are responsible for.

True. CA is already a high-tax state. If all taxes paid by individuals and corporations are included (property, income, sales and excise), state and local government receive about $4,731 per resident in CA, 14% more than the $4,160 average outside CA. Only eight other states had a higher tax burden.