How fitting that two of the most liberal, socialist states in the union are the first to line up at the federal trough and demand a bailout.
California has an insane level of taxation, and no small amount of rich Hollywood types who are always whining about how charitable everyone else needs to be. I say let THEM bail their state out.
California has a tremendously-bloated state government, a morass of overregulation, an extremely inefficient university system rife with redundancy, useless degree programs, and a boatload of tenured professors who add no value to the economy. Surely, the Governator can start cutting costs.
As for Massachusetts, perhaps if they didn’t subsidize health insurance–think: Masscare–they might not be in the mess they are in. Let their cadre of Brookline liberals bail them out.
What’s an ‘insane’ level of taxation – what sort of rates are you talking about? I get such a charge out of American sales tax rates whenever I visit.
http://www.taxadmin.org/fta/rate/sales.html
California clocks in at – wait for it! – 7.25%. Sounds pretty good compared to my 13% here in Canadia… I’d like to see California’s income tax rate.
California’s standard income tax rate starts at 1% and tops out at 9.3%. They tack on an extra 1% “mental health tax” for incomes over $1 mil a year.
And, speaking of sales taxes in Canada, I’m sure you know, Adam, it depends on where you live…
13%: Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador
15.5%: PEI (applies GST on top of PST)
12.875%: Québec (also applies GST on top of PST)
12%: BC, Manitoba
10%: Saskatchewan, except for Lloydminster
5% (GST only): Alberta, the Saskatchewan side of Lloydminster, and the territories
Cubbie, Adam: Aren’t you forgetting about the 7.25% sales tax?
As for their state government, it is bloated beyond all recognition, especially the overly-generous pension system, and–of course–the university system.
From a governmental standpoint, California is 5-foot-3 and weighs in at about 1,500 pounds.
It would be the great case study in fiscal lardassity.
“It would be the great case study in fiscal lardassity.”
. . . and I just snorted at Starbucks.
Thank God I was already done with my Vivanno. 🙂
this incenses me.
that’s why i hate the whole bail out philosophy.
do it for one … the next one wants it, too.
and now a stupid state? how many of those idiots are lined up in the shadows?!!!
and this is the country i have to pass onto my children.
Cubbie, Adam: Aren’t you forgetting about the 7.25% sales tax?
That’s what I mean, Amir; 7.25% sales tax is about half what I pay.
Adam: It’s still insane. When people raise the issue, “Well, our taxes are still miniscule compared to what people in other countries pay,” that’s the mother of all non sequiturs. Americans have enjoyed a much higher standard of living than people in those other countries, too.
Fact is, California gets plenty of tax dollars. Trouble is, they regulate the hell out of everything. Their taxes–even though much less than what you pay–are still quite insane.
Even if you attempt to suggest that property taxes are lower in California, you won’t win that one. Have you a clue what the house prices are like in California?
Some states, such as Tennessee, do not have a state income tax. Instead, they have a higher sales tax. Sales tax varies by state.
Possum: that is correct, and that is also a reason why–in spite of having a similar labor base as Tennessee–Kentucky has far worse revenue problems than its southern neighbor.
Living in Tennessee for a few years made me wish federal taxes worked the same- no income tax, just sales tax.
I wasn’t forgetting about the Cal sales tax. Was just pointing out numbers.
Actually, I’d say California’s government is more like someone who’s 5-3 and 1500 tons.
Just one example of bloating: Amir was talking about the university system. Actually, it’s university SYSTEMS… the University of California and California State University (the Cal State system enrolls more than twice as many people as the UCs). This may be fodder for a full-length post… but let’s just say that there aren’t enough people who can truly benefit from a traditional four-year college education to support both systems.