California Has the Nation's #1, #2, #3, #5, and #9 Highest State Income Tax Rates

California Gasoline Taxes Remain Highest in the United States

Thank You Proposition 30 Supporters!

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California state sales tax rates, before and after Proposition 30, compared to the state sales tax rate in 49 others states.

California state income tax rates, before and after Proposition 30, compared to the maximum income tax rate in 49 other states.

Top spenders supporting Proposition 30 tax hikes.  The top two spenders on Proposition 30 are also the top two spenders on California politics in general.  Both are public-sector employee unions as are many of the spenders on Proposition 30 tax hikes.  Many of these groups are also major contributors to the ruling California Democratic Party, another major spender on Proposition 30 tax hikes.

California rated 'F' on Kauffman small business sentiment survey.  California is one of only four states to receive an 'F' rating.  The primary reason cited was "Tax code."

California has the lowest overall state bond credit rating according to a report by the California State Treasurer (#50). Illinois was recently downgraded to below California by Moody's rating agency.

California was ranked the worst-run state government (#50).  The California Legislature has been ruled by the same party, the California Democratic Party for decades and holds nearly 2-to-1 majorities in BOTH Houses.

California was ranked the worst state for business for eight consecutive years (#50) by a nation-wide survey of chief executive officers.  This is the group that decides whether a business stays in California or whether or not to move a business to California.  The primary reason for California's low ranking is our tax structure and governmental regulation--both under the control of our state government.

California was ranked as the state with the least favorable business climate for ten consecutive years (#50).

California's 8th-grade public school students ranked #49 on the National Assessment of Education Progress (NAEP) reading achievement test according to the California Legislative Analysts Office. See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California's 8th-grade public school students ranked #48 on the National Assessment of Education Progress (NAEP) math achievement test according to the California Legislative Analysts Office. See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California ranked #48 on state unemployment--third highest in the nation and well above the national average.  California's unemployment rate remains stubbornly high despite California's fastest-in-the-nation job growth since June 2012.

California ranked #48 on business tax climate and has ranked near the bottom nationally since 2007.

California ranked #47 on state lawsuit climate.

California's 8th-grade public school students ranked #47 on the National Assessment of Education Progress (NAEP) science achievement test. California tied with Alabama and ahead of only Washington, D.C. and Mississippi.  Strangely, Proposition 30 champion Jerry Brown proposed eliminating the 2nd-year California high school requirement in order to save money.

California ranked #47 on economic performance.

California ranked #46 on small business survival.

California ranked #43 on affordable electricity costs--above the national average.

California ranked #42 on high school graduation rates.

California ranked #31 on per student spending in public schools, according to the California Legislative Analysts Office (LAO).  See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California is ranked the #2 most broadly and onerously licensed state for business.

California has the nation's 2nd-highest gasoline and diesel taxes in October 2012.  According to the Legislative Analysts Office (LAO), Proposition 30 will not affect gasoline taxes but will affect diesel taxes.

California has the nation's highest percentage of residents receiving Temporary Aid to Needy Families (TANF) welfare benefits--well above the national average.

California has the nation's largest population and the nation's largest percentage of undocumented immigrants according to the Pew Research Center on Immigration.

The undocumented immigrant population is estimated at 6.7% of the total California population, or about 1 out of every 15 people.

The Federation for American Immigration Reform (FAIR) estimates that undocumented immigrants cost California's public school system about $11.27 BILLION annually, or about double the funds provided by Proposition 30 tax hikes.

For Governor Jerry Brown So Loved Public Education ...

For Governor Jerry Brown so loved public education, he sought to eliminate California's 2nd-year science requirement to save money.  This came soon after California's 8th graders ranked near the bottom nationally on the National Assessment on Educational Progress (NAEP) test, just ahead of Washington, D.C. (with some of the nation's highest educational spending) and Mississippi but tied with Alabama.

"California budget proposal would end a science requirement:  Under Gov. Jerry Brown's revised budget proposal, a second year of science would no longer be required for high school graduation. The aim is to save the state money."

http://articles.latimes.com/2012/jun/06/local/la-me-science-schools-20120606

For Governor Jerry Brown so loved public education, he says he WILL NOT CONSIDER and THREATENS TO VETO any attempt to soften the blow of his "trigger cuts" to public education.  That's a little strange since he so rarely ever used his veto power against spending.  I guess we know where public education falls in his spending priorities.  Here are just a few examples.

"California Gov. Jerry Brown Signs $200 Million Movie/TV Production Tax Credit Extension"
http://www.hollywoodreporter.com/news/governor-jerry-brown-200-million-tv-movie-production-tax-credit-extension-375223

"Gov. Brown signs bill spending $2.6B on high-speed rail"
http://www.dailynews.com/news/ci_21102650/gov-brown-signs-bill-spending-2-6-billion

"Jerry Brown signs Dream Act for illegal immigrants"
http://www.sfgate.com/news/article/Jerry-Brown-signs-Dream-Act-for-illegal-immigrants-2327890.php

"Top-paid California legislative employees get pay raises"
http://www.sacbee.com/2012/07/20/4643546/top-paid-california-legislative.html

Californians, we've been played for suckers before.  Remember when 1984's Proposition 37 was going to solve education funding via the Lottery?  Remember when 1998's Proposition 98 was going to end the problem of funding public education?  Remember when 2000's Proposition 20 was going to solve education funding by better spending the Lottery money?  Proposition 30 is just another money-grab by an irresponsible California Legislature and Governor.

VOTE NO ON PROPOSITION 30.  Here's why.
http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

Proposition 30 "Trigger Cuts" Threat to K-12 Public Education Adds Up to a Whole Lot of Nothing

If California voters don't pass Proposition 30, Governor Brown forecasts dire consequence that "K-12 schools will lose about $4.5 billion" via the "trigger cuts" provision the California budget that he helped create.

Are these really cuts?  As will all prognostications from politicians, it all depends on what your definition of "is" is.

Let's see what this really means.

Please point your trusty web browser at the California Budget web site.  In specific, find the document  California 2012-2013 Budget Summary Charts (May Revision).  Turn to page 4 and examine Figure SUM-06, duplicated below.
http://www.ebudget.ca.gov/pdf/Revised/BudgetSummary/SummaryCharts.pdf

Find the table entry "K-12 Education" (highlighted above) and notice that the 2012-13 budget year ADDS another $4,502 million (or $4.5 BILLION) in NEW SPENDING (highlighted in red) over last year (2011-12), a 13.2% INCREASE.

If those pesky voters don't pass Proposition 30 tax hikes, let's calculate the net effect on last year's K-12 spending.  I know that the math is difficult, but please try to keep up.  What is $4.5 BILLION minus $4.5 BILLION?  If I'm doing my math correctly, that's pretty close to $0.

This means that a no vote on Proposition 30 keeps K-12 spending roughly the same as last year (and we remember how the kids ran rampant through the streets last year, right?).  It doesn't INCREASE K-12 education by $4.5 BILLION nor does it DECREASE it by $4.5 BILLION.  That's a very much different claim than a $4.5B "cut" to K-12 education.

Is Governor Brown's claim deceptive.  I'll let you decide.

Could we do better by our kids than what the Legislature provided in the budget?  No doubt.  Public education should be a priority.  However, the state has too many other spending obligations that soak up scarce resources.  California will spend $5.4 BILLION to service our debt on General Fund bonds with $3.8 BILLION going just to interest.  See "State of California: Debt Affordability Report (October 2012)", page 22.  And those aren't the only bond obligations!  REFORM is the solution, not tax hikes.

Me? I'm voting NO ON PROPOSITION 30.  Here's why.

http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

See also ...

• BLOG: California Proposition 30: Governor Jerry Brown's Big-Government Tax Hike
  http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

California: The Oasis of Democratic Politics

At the 2012 Democratic National Convention in Charolette, North Carolina, Debbie Wasserman Schultz, Chairwoman of the Democratic National Committee (DNC) met with the California delegation and spoke of "the oasis of Democratic politics that California is."

Really?  REALLY?!?!  As a fourth-generation native Californian, a small businessman, and attempting to raise a family, I can assure you that I don't feel like I live in heaven with the Democrats running the state.

Democrats hold solid, nearly two-to-one majorities in BOTH Houses of the California Legislature.  Likewise, Democrats hold EVERY major statewide elected office.  Yes, California is an "oasis" of one-party rule. Let's see what a tremendous record of success that the "oasis of Democratic politics" has  delivered for Californians.  I'm just surprised that the rest of the nation isn't begging for California's Democratic Party to take over the rest of the nation.

As of January, 2013, California has the nation's highest unemployment rate, persistently well above the national average although tied with minuscule Rhode Island.  Some will argue that California has had some of the fastest job growth in the nation, which is true--since June 2012 and California needs exceptionally high job growth to overcome its massive jobs deficit.  Meanwhile, 8 of the 10 cities in the nation with the highest unemployment rate are in California.

California has among the nation's highest income tax rates.  California's second-to-top rate of 9.3% is higher than the maximum tax rate in 47 other states and begins at just $48,000 in income.  California's top rate of 10.3% is second highest in the nation, behind Hawaii's 11%. Despite that, California's high tax rates don't produce enough revenue to meet the Sacramento's insatiable spending appetite.  Consequently, the latest sham budget crafted by Governor Brown and the California Legislature includes new tax hikes via Proposition 30 that give California the nation's 1st, 2nd, 3rd, 5th, and 7th highest state income tax rates.  Perhaps not surprisingly, Debbie Wasserman Schultz lives in Florida, one of only seven U.S. states that have ZERO income tax.

Likewise, Proposition 30 increased California's state sales tax rates, which were already the highest in the nation.

California has the nation's highest gasoline tax--tied with New York--about 38% higher than the national average.  California pays some of the highest fuel costs in the nation.

California has lost income-producing taxpayers to other states, according to the Tax Foundation.  Most of the migration was to lower-tax or no-tax states.

In a 2011 Kauffman Foundation survey on small business friendliness, California was one of only four states that received an 'F' rating . Why? According to those surveyed, the primary reason was California's tax code.

California is ranked among the five worst business tax climates in the United States by the Tax Foundation.

California was ranked DEAD LAST by a nation-wide survey of chief executive officers as the worst place in the USA to do business.  California ranked last for nine consecutive years.

California was ranked as the nation's least favorable business climate on a survey by Development Counsellors International.

California is ranked #46 on the 2011 Small Business Survival Index, primarily due to high taxes.

California is the nation's 2nd-most broadly and onerously licensed state.

California is ranked #47 on its lawsuit climate, deteriorating from earlier ratings.

According to an October 2012 report by the California State Treasurer, California has the lowest overall credit rating of any state in the nation.  Sure, California is only ranked second-worst by Moody's but last place by S&P and Fitch.  Why is California now 2nd place with Moody's?  Did California's new sham "balanced" budget convince the credit rating agencies?  No, it's because Moody's downgraded Illinois to below California.  California has the nation's 3rd-highest debt per capita, 2nd-highest debt to personal income, and 2nd-highest debt as a percentage of state GDP.

Despite our high debt levels, Democrats in the California Legislature further burdened California taxpayers by pushing through a new, multi-billion-dollar, not-so-high-speed rail system.  The new plan is so misguided that even the author of Supertrains: Solutions to America's Transportation Gridlock and one of the key Democrat advocates behind the original rail plan recommended AGAINST passing the new plan.

Despite our high debt levels and a supposed lack of money, the California Legislature approved pay raises for Legislative staff.

California has 12% of the nation's population but 33% of the nation's Temporary Aid to Needy Family (TANF) welfare recipients. Why is that?

According to a California Fair Political Practices Commission (FPPC) report, the two biggest spenders in California politics are state public-employee unions California Teachers Association (CTA) and the Service Employees International Union (SEIU).  A majority of that political spending goes to the California Democratic Party.  According to a former California Democrat Legislator, the CTA considers itself as a "the co-equal fourth branch of government."  Even career Democrat, former Assembly Speaker Willie Brown acknowledges that California Governor Jerry Brown (no relation) is afraid to confront the teachers union.

These same unions are the two biggest spenders supporting Proposition 30, designed to raise your taxes.  Did I mention that California is a "union-only" state?

California's 8th-graders scored 3rd worst in the nation in science--tied with Alabama and ahead of only Washington, D.C. (the nation's brain trust) and Mississippi.  Naturally, the California Legislature discussed cutting the 2nd year of high-school to save money.  But, good news everybody, we do have state-mandated "gay history" classes!  Some will argue that California's poor showing is all about student funding.  Washington, D.C. scored dead last on the science assessment by a considerable margin.  Washington, D.C. also has among the nation's highest per student spending.

Democrat super-star Antonio Villaraigosa is Mayor of Los Angeles. Los Angeles is now ranked the 2nd most corrupt region in the United States behind infamously-corrupt Chicago.  You may remember him from the Democratic National Convention when he attempted to return the word "God" and recognize Jerusalem as the capitol of Israel in the Democratic Party platform.

Forty-two-year incumbent California Democrat Senator Dianne Feinstein is afraid to debate her Republican challenger, Elizabeth Emken.  As the July 17th Los Angeles Times editorial put it, "Nothing screams 'entrenched incumbent' more than a refusal to debate an opponent."

Democrat Congressman Pete Stark has been in Congress since 1973.  Although supposedly representing California, he has declared his Maryland home to be his primary residence.  In 2010, over 90% of his campaign contributions came from out-of-state donors, primarily political action committees (PACs).  Fortunately, he finally lost his seat in 2012--a long overdue win for California voters.

California's government was ranked the nation's worst-run state government in 2011 and, in 2012, for the 2nd year in a row.

Only three cities in the United States have a net "unfavorable" rating.  Two are in California (Oakland, Los Angeles) and governed by Progressive Democrats.  California's current Governor, Jerry Brown, was former Mayor of Oakland.

I could go on, but there's not enough room to categorize all the "success" bestowed on the "oasis" of California by the Democrats. In an extra moment of hilarity, leaders from the one-party rule California Democratic Party politburo call Republicans "Nazis." If this is "heaven," I wonder what hell feels like.

New Jersey vs. California--The Governor Smackdown!

Recently, New Jersey's rotund and robust Governor Chris Christie and California's venerable Governor Jerry Brown entered into what might best be called a smackdown.  The entire escapade is somewhat funny given the horrible economic condition of BOTH states.  It's like the zombie telling the corpse that he stinks.

The battle began when Christie Christie, during a speech at the Republican National Convention, called Jerry Brown an "old retread" and a "bad choice".  Jerry Brown, despite his advanced age, shot back with a physical fitness challenge to the immensely obese Chris Christie, including a three-mile race.  Apparently, Jerry Brown misheard "physical" for "fiscal" fitness.

The real loser in this "Battle of the Governors" are the people of California and New Jersey.  Both California and New Jersey suffer from a variety of similar economic maladies and for similar reasons.

• Both California and New Jersey have among the nation's highest state income tax rates.  New Jersey's top income tax rate is 8.97% and starts at incomes over $500,000 (single taxpayer).  In contrast, California's second-highest rate is 9.3% and starts at incomes over $48,000 (single payer)!  California also adds a 1% surtax on incomes over $1 million, resulting in a 10.3%, which is second nationally only to Hawaii's top rate of 11%.
  
  California Governor Brown wants to raise California's ALREADY-high state income tax rates via Proposition 30.  Under Governor Brown's plan, those making over $250,000 would pay 10.3%, which is the rate currently only paid by millionaires in California.  Proposition 30 adds two new tax brackets, including an 11.3% bracket at incomes over $300,000 and a 12.3% bracket at incomes over $500,000.  Both new brackets are higher than any other state in the nation.  As before, the 1% surtax on millionaires would boost California's top income tax rate to 13.3%--a full 21% higher than the next highest state, Hawaii!

• Both California and New Jersey have among the nation's highest state sales tax rates.  California currently has the nation's highest statewide rate, although the combined state, city, county, and local rates in other states may be higher. Governor Brown's Proposition 30, if passed by California voters, would raise the state sales tax rate to 7.50%.

• California has the nation's highest gasoline tax.  Surprisingly, New Jersey's gasoline tax is relatively low--well below the national average.

• Both the California and New Jersey Legislatures are dominated by Democrats with close ties to powerful public-sector unions.  In California, public-sector unions are among the biggest spenders in California politics.  Both the Speaker of the California Assembly and the President pro Tempore in the California Senate have strong ties to California labor unions.  Perhaps unsurprisingly, California's public-sector unions are also major funders of Governor Jerry Brown's Proposition 30 tax hikes.

• Both California and New Jersey are union-only states, where some jobs in the public sector require union membership. In fact, Jerry Brown expanded collective bargaining for California's teachers.
• Both California and New Jersey have among the nation's worst-rated business climates. Both California and New Jersey duke it out for one of the "coveted" bottom five positions.

On the Kauffman Foundation survey of small business friendliness, California ranked 'F'--primarily for its tax code.  Proposition 30, if passed by voters, will no doubt lower California's already dismal ratings.

• Both California and New Jersey have unemployment rates well-above the national average. As of July 2012, California had the nation's 3rd worst unemployment rate at 10.7%.  New Jersey had the nation's 4th worst but is almost a full percentage point better than California.  California's unemployment remained steady from June-to-July while New Jersey's rate worsened slightly from 9.6% to 9.8%.

• Both New Jersey and California have low credit ratings, although California's currently ranks the lowest in the nation. Illinois has since been downgraded since this chart was created, but still ranks above California.

• California has the nation's largest population of Temporary Aid to Needy Families (TANF) welfare recipients, while New Jersey's TANF population is toward the low end nationally.

While California's Governor Jerry Brown in old and New Jersey's Governor Chris Christie is fat, neither state Governor can boast he has a beautiful economy.  However, in my opinion, Governor Brown is leading California in the wrong direction with his Proposition 30 tax hikes.  I encourage California voters to VOTE NO on PROPOSITION 30 this November.