Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/23/2012 (2 years 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 (2 years 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Politics & Policy

GLOVES ARE OFF: Donald Trump denounces Bush, Walker and Clinton as being beholden to donors Watch

Image of Speaking east of Des Moines, Donald Trump was most concise in his attack upon Walker. Criticizing the Wisconsin governor's handling of his state's economy, Trump accused him of

By Catholic Online (NEWS CONSORTIUM)

At a "free-wheeling" press conference, GOP Presidential candidate Donald Trump says he is putting no cap into the money he is going to pour into his campaign. A self-made billionaire in real estate, Trump denounced Republican candidates Jeb Bush and Scott ... continue reading


Nuns vs. Obama: Obama Administration refuses to exempt Little Sisters of the Poor from regulation forcing them to distribute birth control Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

The national debate over the Affordable Care Act is heating up. A Romantic Catholic group of nuns, who manage a nursing home around the world called the Little Sisters of the Poor, continue their fight against the law's debatable contraceptive mandate. MUNTINLUPA, ... continue reading


Millions upon Millions of United Kingdom aid money funneled to the Clintons Watch

Image of The Clinton Health Access Initiative spends its funds on improving the treatment of HIV/AIDS, malaria and tuberculosis in the developing world, such as in Africa and Southeast Asia.

By Catholic Online (NEWS CONSORTIUM)

Influential people, falling sway to a former United States president - and his wife, with eyes on the White House, it was learned that tens of millions of pounds of United Kingdom aid money has been siphoned through charities linked to Hillary Clinton. LOS ... continue reading


Displeased with 'attack' editorial, Donald Trump bars Iowa newspaper from campaign event Watch

Image of It was yet another gutsy move from the billionaire real estate tycoon, which may alienate some - as well as win new friends.

By Catholic Online (NEWS CONSORTIUM)

It was yet another gutsy move from the billionaire real estate tycoon, which may alienate some - as well as win new friends. Displeased with an editorial published in the Des Moines Register, asking him to withdraw from the 2016 presidential race, Donald Trump ... continue reading


FLAT-OUT LIE: Ted Cruz says fellow Republican Mitch McConnell lied about Export-Import Bank Watch

Image of The denouncement was a highly unusual one, even if Ted Cruz has made no effort to disguise the fact that he has called out his fellow Republicans for wrongdoing.

By Catholic Online (NEWS CONSORTIUM)

Well-known for his reputation fieriness, Ted Cruz took to the Senate floor last week and said that Mitch McConnell told a "lie." The Texan lawmaker accused the Senate majority leader of deceiving him and the rest of the GOP conference over McConnell's plans for ... continue reading


Destroying the Competition: Will Donald Trump launch a third-party candidacy? Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Donald Trump has made numerous headlines during his campaign, so far. He has received criticsm from both the Republicans and the Democrats; it can even be said that the Republican party is "shooing" Trump away, making him an outsider. Is this the smartest move for ... continue reading


Donald Trump's Trump Card and reasons why he will be the next president Watch

Image of

By Marshall Connolly, Catholic Online

Donald Trump is a man you either love or hate, depending on your views of how the country should be run. Regardless of how people feel about the man and his commentary, there are some compelling reasons to believe he will become the next president of the ... continue reading


Senators call for investigation into the harvest of aborted baby organs Watch

Image of Planned Parenthood doctor Mary Gatter said,

By Catholic Online (NEWS CONSORTIUM)

Health and Human Services Secretary Sylvia Burwell has been called upon to investigate the Planned Parenthood Federation of America's "practice of harvesting the organs of unborn babies." Fifty U.S. senators, 49 Republicans and lone West Virginia Democrat Joe ... continue reading


MAN BEHIND TRUMP: 'He's a good guy personally... but he's a bomb thrower!' Watch

Image of Corey Lewandowski shares many of the same qualities of his client.

By Catholic Online (NEWS CONSORTIUM)

Remember the name: Corey Lewandowski, the campaign manager for the outspoken and controversial Donald Trump. It should come as no surprise that Lewandowski shares many of the same qualities of his client. "He's a good guy personally, [but] he's a bomb thrower," one ... continue reading


Twenty-two percent of all children living in the U.S. are in poverty Watch

Image of Among children in racial minorities, and those living in the Southern states, the situation is dire.

By Catholic Online (NEWS CONSORTIUM)

The poverty rate among children has climbed to 22 percent under the Obama administration. In a recent report, it was learned that three million more children are living below the federal guidelines for poverty. LOS ANGELES, CA (Catholic Online) - "The 2015 "Kids Count" ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Exodus 33:7-11; 34:5-9, 28
7 Moses used to take the Tent and pitch it outside ... Read More

Psalm, Psalms 103:6-7, 8-9, 10-11, 12-13
6 Yahweh acts with uprightness, with justice to all ... Read More

Gospel, Matthew 13:35-43
35 This was to fulfil what was spoken by the prophet: ... Read More

Saint of the Day

Saint of the Day for July 28th, 2015 Image

St. Innocent I
July 28: Innocent was born at Albano, Italy. He became Pope, succeeding ... 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