Heated elections, repressive taxes and an uncontrollable state budget have sent California taxpayers running for cover. The slow decline in California’s revenue has prompted legislators to raise taxes virtually strangling businesses ability to expand.
According to “Breaking Bad,” a report put out by Richard Rider a San Diego Tax Fighter activist, the state’s taxation problem is getting worse not better. California has the third highest state income tax in the nation and the 9.55 percent tax bracket starts at $46,349 for people filing as individuals.
California is home to the highest state sales taxes in the nation at 8.25 percent and the nearest competitor comes in at 7 percent.
If you own a business in California get ready to pony up 8.84 percent to Uncle Sam, this is the highest corporate tax rate west of the Mississippi. According to the Tax Foundation’s 2010 State Business Tax Climate Index, California ranks 48th among states-friendly to business owners and creating a good working relationship.
Other notable taxes include;
– 4th highest capital gains tax at 9.55 percent
– 1st in gasoline taxes (averaging 67.4 cents/gallon)
– Top 10 in yearly vehicle registration and licensing taxes
– The 7th highest “tax freedom day”
– The 3rd highest unemployment rate in the country
– High school per pupil spending (Los Angeles District $29,780 per student)
– Public schools have 2nd lowest graduation rate
– School teachers receive the 2nd highest pay in the nation ($69,093 average)
– California has 12 percent of the nation’s population, 36 percent collecting some type of welfare
– The state has the lowest bond ratings
– The top 600 CEO’s rated California the worst place to do business five years running
– In the last eight years 1.4 million residents have left California taking with them their tax dollars. Among the California exodus are the movers and shakers like Tiger Woods.
As taxes continue to rise, good paying jobs and commerce will disappear. As a result California will lose its tax base, forcing California’s fiscal death spiral to worsen, says Rider. “This downward spiral must stop now.”