Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/23/2012 (1 year ago)

Catholic Online (www.catholic.org)

Debt-ridden public school system among California's many cash drains

Some say that a new tax initiative, approved last month which will make the citizens of California pay the highest taxes in the nations will backfire. Just as the top money-earners in some European nations are required to pay as much as 70 percent of their income, who in turn flee to nearby countries with much lower tax rates, so will California's biggest breadwinners flee to neighboring Nevada, they argue.

With the new tax increase for families making more than $250,000 annually, the tax base could shrink even further for California, whose 2012 budget deficit is projected to hit $28 billion.

With the new tax increase for families making more than $250,000 annually, the tax base could shrink even further for California, whose 2012 budget deficit is projected to hit $28 billion.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/23/2012 (1 year ago)

Published in Politics & Policy

Keywords: California, Governor Jerry Brown, tax increase, exodus, tax base


LOS ANGELES, CA (Catholic Online) - Democratic Governor Jerry Brown championed the tax increase by suggesting that high-earners must shoulder the largest burden in bailing out the state. Chief among them is California's notoriously cash-strapped public school system.

Steep unemployment and government debt have already sent many Californians fleeing in large numbers. The state has seen an estimated 225,000 annually over the last decade.

With the new tax increase for families making more than $250,000 annually, the tax base could shrink even further for California, whose 2012 budget deficit is projected to hit $28 billion.

"More is never enough for these people," Kris Vosburgh, executive director of the Howard Jarvis Taxpayers Association says. "It's hard to believe people will not leave.

"With high taxes and heavy regulations, it's just difficult to produce those widgets at a lower price than somebody in, say, Texas," he told FoxNews.com last week.

"California politicians can fleece people in 2012, but there's no guarantee they can do the same in 2013 and later years. People can leave," Syndicated columnist Walter E. Williams wrote in The Orange County Register.

The California exodus has seen money flowing into neighboring state's coffers. California expatriates already put roughly $5.67 billion into Nevada's economy as well as $4.96 billion into Arizona and $4.07 billion in Texas over the past decade.

These figures are offered in the Manhattan Institute study entitled "The Great California Exodus: A Closer Look."

Based on data from the state and such federal agencies as the Internal Revenue Service, the study also argues that "chronic economic adversity," including powerful unions, has driven away businesses.

The California Budget Project, a liberal-leaning think tank has declined to talk about the issue but points to a study that concluded Hollywood executives, Silicon Valley entrepreneurs or other higher-earning Californians will not leave, based on the aftermath of a 2005 so-called "millionaires tax" increase.

The California tax increases approved last month, known as Proposition 30, are expected to generate at least an additional $6 billion annually - and lay claim to 2012 income.

The rate hikes range from 9.3 percent to 10.3 percent for families making $250,000 to 10.3 percent to 13.3 percent for families making at least $1 million annually.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More Politics & Policy

Obama's right, he has issued fewer executive orders than his predecessors, BUT... Watch

Image of Obama signs a bill while on vacation.

By Catholic Online (NEWS CONSORTIUM)

What's in a name? President Obama has ruled more from his desk, without the consent of Congress, more than any other president, but liberals are right to point out that these are not "executive actions" and don't count against his tally compared to other presidents. ... continue reading


Federal judge warned: Don't interfere with Obama's plan for deportation amnesty Watch

Image of U.S. President Barack Obama speaks about immigration reforms during a visit to Casa Azafran in Nashville,

By Catholic Online (NEWS CONSORTIUM)

In unusually strong language, the Obama administration warned a federal judge to stay out of the debate over President Obama's deportation amnesty. "Federal courts sit to decide cases and controversies, not to resolve disagreements about policy or politics," ... continue reading


Rick Santorum Seems Poised to Launch a 2016 Presidential Campaign Watch

Image of Rick Santorum

By Keith A. Fournier

I don't think I've met a 'suit' yet. It's very much heart of America, average Americans who have found a place where they see someone who will stand up and fight for them. If the Republican Party has a future - and I sometimes question if it does - it's in middle ... continue reading


You should be outraged! While Obama distracted you with a government shutdown, look what Senate Democrats snuck into this bill! Watch

Image of The White House has just received unprecedented surveillance powers thanks to an amendment to the Intelligence Authorization Act for the 2015 fiscal year.

By Matt Waterson (NEWS CONSORTIUM)

Overshadowed by the potential government shutdown and funding vote in the House, another bill was passed this week by Congress, one with much more sinister, and flagrantly un-American, goals. LOS ANGELES, CA (Catholic Online) - Congress passed a bill that gives a ... continue reading


What are they covering up? White House attempts to delay CIA torture probe Watch

Image of Secretary of State John Kerry on Friday reportedly called Sen. Dianne Feinstein, D-Calif., chairwoman of the Senate Select Committee on Intelligence, to tell her that the report's release should be delayed.

By Troy Dredge, Catholic Online

A Senate report, years in the making, which accuses the Central Intelligence Agency, or CIA of using banned torture techniques while evading oversight may never be released, According to Bloomberg, there have been ongoing efforts by the White House efforts to ... continue reading


Landmark pregnancy discrimination case heard by Supreme Court Watch

Image of Depending on the high court's ruling, companies may be required to afford mothers-to-be the same

By Catholic Online (NEWS CONSORTIUM)

A landmark case involving the rights of expectant mothers in the workplace was heard by the Supreme Court this week. Depending on the high court's ruling, companies may be required to afford mothers-to-be the same "reasonable accommodation" as they would ... continue reading


17 states REBEL against Obama, join lawsuit over immigration scandal Watch

Image of 17 states have banded together to sue Obama over his illegal action to refuse to enforce immigration reform, hoping the courts will block his attempts at providing amnesty to 5 million illegal immigrants.

By Matt Waterson (NEWS CONSORTIUM)

Seventeen states have allied together in order to sue President Obama's administration, citing the president's disregard for constitutional limits to presidential power, and refused to fulfill his obligation to enforce U.S. laws when he attempted to dismiss ... continue reading


A distinct euphemism: Health care reform was 'political miscalculation,' Schumer says Watch

Image of When the Democratic Party focused in exclusion to all else, on health care, he added,

By Catholic Online (NEWS CONSORTIUM)

One apt euphemism - which is essentially a nice term very a not-at-all-nice term, is the phrase, "Economical with the truth," i.e. lying. Senator Charles Schumer of New York, in summarizing the massive loss by democrats in elections earlier this month, said ... continue reading


The man behind the mess of Obamacare wants you to encourage abortion! Watch

Image of John Gruber, the man behind Obamacare, is an ardent supporter of abortion.

By Catholic Online (NEWS CONSORTIUM)

The architect of the Affordable Care Act (ACA), John Gruber, has made a fool of President Obama and the Democrats in his administration once again. LOS ANGELES, CA (Catholic Online) - Gruber has been recorded numerous times admitting that the ACA was written and ... continue reading


Should Obama be able to use the IRS as a weapon to target conservative opponents? Watch

Image of President Obama has used the IRS as a weapon to target Tea Party and conservative opponents.

By Catholic Online (NEWS CONSORTIUM)

It should come as a surprise to no one that fraud and power abuse is rampant in President Obama's White House, and the new scandal fall on the heals of the old IRS tax scandals of the last few years. LOS ANGELES, CA (Catholic Online) - The Treasury Inspector ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Saint of the Day

Saint of the Day for December 18th, 2014 Image

St. Rufus
December 18: Rufus and Zosimus were citizens of Antioch (or perhaps Philippi) ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter