San Diego is the Olathe of California

[kcfan82]

Why Is California Broke?


Inquiring minds are asking "Why Is California Broke?" It's a good question. Please consider ...



•California has the 3rd highest state income tax in the nation: 9.55% tax bracket at $47,055 and 10.55% at $1,000,000 - Tax Foundation 2010 State Business Tax Climate Table 2
•California has the highest state sales tax rate in the nation by far at 8.25%. Indiana is next highest at 7%. Table 15
•California corporate income tax rate is 17th worst in the nation with a rate of 8.84%. - However, of the non graduated states, only Pennsylvania at 9.99%, Rhode Island at 9.0%, and the District of Columbia at 9.98% are higher. One size fits all (and a very high one at that) is exceptionally hard on small businesses. Table 8 and Table 2

•California ranks 13th best in property taxes. However proposition 13 causes massive distortions for new buyers. Table 2

•California has the fourth highest capital gains tax 9.55%. - Capital Gains Tax Rates By State
•California has the highest gasoline tax as of January 2010, averaging 65 cents/gallon. The national average is 47.4% - API Motor Fuel Taxes
•California has one of the highest state vehicle license car taxes, 1.15% per year on value of vehicle, up from 0.65% in 2008. [expired link]

So where's the money going?


•1 in 5 in LA County receiving public aid, nearly 2.2 million people as of February 2009. 20% in Los Angeles County receive public aid
•California has 12% of the nation’s population, but 36% of the country’s TANF (“Temporary” Assistance for Needy Families) welfare recipients – more than the next 8 states combined. Unlike other states, this “temporary” assistance becomes much more permanent in CA. July, 2009 California has more recipients in key welfare category than next eight states combined.
•California prison guards highest paid in the nation. The maximum pay of California's prison guards is nearly 40 percent higher than that of the highest-paid guards in 10 other states and the federal government, according to a study by the California Department of Personnel Administration. Cal-Taxletter
•California teachers easily the highest paid in the nation. National Education Association
•California now has the lowest bond ratings of any state, two steps above junk. The new rating affects about $72 billion of general obligation and lease-supported bonds. July 15 California bond rating cut again
•California ranks 44th worst in “2008 lawsuit climate.” Institute For Legal Reform
•California, a destitute state, still gives away college education at fire sale prices. California community college tuition is by far the lowest in the nation. Nationwide, the average community college tuition is 4.5 times higher than California CC’s. This ridiculously low tuition devalues education to students – resulting in a 30+% drop rate for class completion. Moreover, 2/3 of California CC students pay no tuition at all – filling out a simple unverified “hardship” form that exempts them from any tuition payment, or receiving grants and tax credits for their full tuition. [Expired Link]
•California offers thousands of absolutely free adult continuing education classes. In San Diego, over 1,400 classes for everything from baking pastries to ballroom dancing are offered totally at taxpayer expense. San Diego Continuing Education
•California residential electricity costs 13.81 cents per kilowatthour. The national average is 6.99-8.49. US Department of Energy
•It costs 38% more to build solar panels in California than in Tennessee – which is why European corporations have invested $2.3 billion in two Tennessee manufacturing plants to build solar panels for our state. March 5, 2009 More Solar Companies Producing Elsewhere to Sell to California