Republicans Put the “Mental” in Governmental
Atrios carries this blurb about the California budget fiasco:
The hang-up came in trying to reach the required two-thirds majority in each house, where three Republican votes are needed. The Assembly appeared to have sufficient votes lined up, but the Senate was falling one short.
Debate halted after Republican Sen. Dave Cox told reporters he was against tax increases and would not support the two-year budget fix. Before the Legislature convened on Saturday, it was thought that Cox might have supported the plan.
”You can’t help the economy of the state of California by raising taxes. Yes, there’s a big deficit. But in the final analysis, you’re going to have to find another way to do it,” Cox said. ”My answer is no, and I’m not looking for additional information. I’ve made my decision.”
Here again we see that the GOP is wedded to a deeply unserious approach to governing. It reminds me of the childishness of Bill Lee’s single campaign talking point that Jack Markell refused to make a “no new taxes promise.”
Nutty? Empty? Weird? All of the above.
As long as the GOP position is that all taxes are evil, is there really any reason to have any republicans elected to any office anywhere?
Taxes are not the answer and here is why.
California
The Facts on California’s Tax Climate
Here are some basic facts on California’s tax system and how it compares to other states:
In 2007, California taxpayers had to work until May 7th to pay their total tax bill (ranked 7th highest nationally), 7 days later than national Tax Freedom Day (April 30).
California’s State/Local Tax Burden Above National Average
Estimated at 10.5% of income, California’s state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%. Californians pay $5,028 per capita in state and local taxes.
California’s 2009 Business Tax Climate Ranks 48th
California ranks 48th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.
California’s Top Individual Income Tax Rate is the Highest in the Nation
With six official brackets (and an unofficial bracket for those earning over $1,000,000) and a top rate of 9.3 percent (and an unofficial top rate of 10.3% for millionaires), California’s individual income tax has the third-highest rate and one of the most highly progressive structures in the nation. In 2005, California’s individual income tax collections were $1,189 per person, which ranked 7th highest nationally. Since most small businesses are S Corporations, partnerships, or sole proprietorships, they pay their business taxes at the rates for individuals. That makes California’s taxes on small businesses some of the most burdensome in the nation.
California’s Corporate Income Tax Rate is the Highest in the West
Corporations looking to relocate, or even establish, a business in the West may shy away from California, as the state’s 8.84% flat rate is the highest corporate tax rate in the West. Nationally, only nine states have a higher top corporate tax rate than California. In 2006, state-level corporate tax collections (excluding local taxes) in California were $282.97 per capita, which ranked 7th highest nationally.
California’s Sales Tax Rate Exceeds National Median; Gas Tax Highest in Nation
California levies a 7.25% general sales or use tax on consumers, which is above than the national median of 5.4% and local governments are permitted to another 1.5%. State and local governments combined collected $1,362 per capita in general sales taxes in 2005, which ranks 14th highest nationally. California’s statewide gasoline tax stands at 45.5 cents per gallon and is the highest in the nation, while its cigarette tax stands at $0.87 per pack of twenty (29th highest nationally). Additionally, California’s general sales tax and various municipal sales taxes are levied on the sale of gasoline.
Wow. Lots of talking points which prove, exactly what? California, by virtue of its size and population, runs like a small country. The people who live there think it’s its own country, but that’s another matter. Anyway, they have problems unique from other states; yearly fires, terrible air pollution, a long coastline – you get the idea. If they are running a budget deficit, they may have to consider a tax increase.
California’s screwed up system of government needs to be fixed. The 2/3 requirement is insane. The whole legislature and the governor needs to be recalled.
Ha ha ha! Corporations may shy away from California, except that they don’t. They’re home to more Fortune 1000 companies than any other state. They’ve got a great educational system, natural resources and parks out the wazoo, dazzling nightlife, and great weather. California has EVERY REASON to charge corporations extra – it’s the law of supply and demand. Demand for living and working in California, and their highly educated workforce, is high.
And none of those talking points account for the mandatory spending (made mandatory by programs ratified by referendum), court-ordered spending (prisons, mostly), and the debt service/ debt retirement of many years of borrowing (the current Governor is among the worst offenders here).
California has $42B of deficit to close. If there is anyplace where the next round of Governor and legislature elections is crucial, it is here. Someone has to tame the cozily gerrymandered districts of alot of these wingnuts to get any real legislative change.
Thanks RtheGOP, I needed something to put me asleep.
Mike Protack, if you had to work an ‘extra week’ to make sure the kids got fed, you would and you know it. So STFU.
Kudo’s to Mr. X for his kickass response!