California Dreamin': Socialism Gone Wild

Recently, Honda announced they will not build a Prius plant in California. Also, AAA is closing a 900 person center, there

Back in the 1990s, when I lived in and around L.A., a buddy made a good living taking show biz people and turning them into Nevada corporations. I also noticed a net decline in the use of electricity. Many of the biggest CaliforniA names are not paying tax in California, they just promote a system that the "people" do, especially the "rich," who didn't move or incorporate

Adding to the insult, California taxes worldwide income of a resident. Check out what their papers say -

February, 2008

California exodus turns to stampede
High taxes drive jobs, people from one state to another

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Posted: February 20, 2008
8:00 pm Eastern

© 2008 WorldNetDaily

WASHINGTON – California, which once lured Americans from near and far, is now driving out millions of the most productive residents – including high percentages of the most affluent.

"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."

And it's not just the rich leaving.

Based on data from moving companies, California had the second-highest domestic population out-flow of any state in 2005, according to the report, "despite the beautiful weather, beaches, and mountains."

The bad news for California is that it faces a $14 billion deficit this year, despite boasting one of the highest tax burdens in the nation.

The report, published by the American Legislative Exchange Council shows jobs are not just leaving the country – they are moving from state to state, with the population following....

Month later, on same report

Higher taxes fuel exodus

Los Angeles Business Journal, March 10, 2008Charles Crumpley

THE talk out of Sacramento about the possibility of raising taxes is alarming. Won't those people ever learn?

The more they raise taxes, the more people leave. Trouble is, it's often wealthy people and business owners who pack up. So the state ends up with less money.

A recent report by the American Legislative Exchange Council illustrates the problem. The richest 10 percent of income earners in California pay 75 percent of the state's income tax. California's marginal tax rate is the second highest in the country. Many of these rich people are small business owners--the ones who create jobs.

So when taxes get raised on those folks, they tend to leave. According to the report, about 240,000 more ...

The report said that when the state raised its income tax level under Gov. Pete Wilson, "the tax hike incited one of the worst fiscal crises in the state's history. As tax revenues cratered, the debt exploded, and high-income people fled the state never to return."

Recently,

Is Anyone Going to Stop the Teacher Exodus from California?

/>Cruickshank.gif" src="http://www.californiaprogressreport.com/Robert-Cruickshank.gif" align="right" height="168" width="130">By Robert Cruickshank

When Arnold took office in late 2003 he argued that one of the state's highest priorities was to "reform" a workers' compensation system that was supposedly driving businesses, and therefore jobs, out of the state. And the Legislature did so, cutting benefits to injured workers in order to try and keep business and the Chamber of Commerce happy.

Five years later California faces a similar crisis, as skilled workers flee the state in droves, taking their salaries and therefore their positive economic impact with them. But this time, Arnold seems happy to see their backs, because it's teachers and not well-connected corporations that are fleeing a state thanks to poor budget priorities:...

Something new? Here are some sentiments from 2002:

California''s collapse: California''s woes--high taxes, costly energy, burdensome regulations, and more--are all symptoms of government run amok.(California)

... Buck Knives celebrated its century mark in 2002. Its legendary blades have devoted fans worldwide and have been favorites of generations of outdoorsmen. In January 2003, CEO and president C.J. Buck regretfully announced that the company would be moving from its longtime California home in El Cajon, near San Diego, to Post Falls, Idaho. Mr. Buck said he loved the El Cajon-East County area where he grew up, "so it's very sad to have to make this decision." However, high taxes, energy costs, workers" compensation costs, and regulations have made continued manufacturing in California unfeasable. The move to Idaho will save the company millions of dollars annually. The loss to California: 250 jobs and millions of dollars in tax revenue...

Exodus of Business and Population

Unfortunately, the exodus has been underway for some time, and it appears to be accelerating. Fidelity National Financial, the country's largest title insurer, is moving its headquarters from Irvine, California, to Jacksonville, Florida. Many of Fidelity's 26,000 employees will also be leaving the Golden State. Solectron, a major Silicon Valley assembler of hi-tech hardware, is in the process of laying off 10,000 of its 75,000 workers and is shifting more of its operations to Asia.

Schwarzeneggar ran on fixing the workman's comp, and it did look like he fixed the state, but it was not true. He got into power, worked on workman's comp, then started taxing "the wealthy" to death.

So, does anyone learn anything? July, 2008, LA Times:

State Democrats offer plan to tax the rich, corporations

By Samantha Young, The Associated Press

Article Last Updated: 07/09/2008 09:44:50 PM PDT

SACRAMENTO - Democratic lawmakers on Wednesday detailed a list of tax increases totaling more than $8 billion, a share-the-pain proposal they said represents the best hope for filling a budget shortfall while maintaining California's spending priorities.

The plan, which also incorporates billions in spending cuts and amnesty for tax-evaders, was released more than a week into the new fiscal year.

Democrats say the state can bring in $8.2 billion by raising taxes on the wealthiest Californians and corporations. The tax amnesty would generate another $1.5 billion.

Those steps and the cuts are needed to close a $15.2 billion deficit, Democratic lawmakers said during a news conference.

"We're asking those who have benefited the most to pay the most - who have made California what it is and should want to keep it the way it's been," said Senate President Pro Tem Don Perata, D-Oakland.

The Democratic spending plan also makes $6 billion in cuts to education, health care, public transit and other areas. Assembly Speaker Karen Bass, D-Los Angeles, said Democrats would not accept deeper cuts.

That leaves the two sides far apart as they face an Aug. 1 deadline to strike a deal. That's the date the state would have to start borrowing money.....

The state actually runs on the tax on some 6,000 ultra wealthy. Imagine, if you can, that they throw up their hands and leave because their money was being confiscated.

One can be an honest socialist, like Bernie Sanders in Vt., and want the rich to pay the way, but that is an idealistic dream. The rich did not get that way being stupid. They will just go away. Some may want to pay a higher share, in some notion of duty, but that sentiment has its limits.

It is easy to incorporate in Nevada, get a local place, as home, and still live in your place in California. Millions are already doing it.

The bottom line: chose between chasing water that came out of the top of your pool or fix the pool to keep the water in and to keep the circulation going, so that the pool stays clean.