A California lesson in progressive income taxation

posted at 1:20 pm on February 14, 2012 by Ed Morrissey

Margaret Thatcher once famously pointed out the core problem of socialism: “They always run out of other people’s money.”  California has been intent on demonstrating exactly what Thatcher meant with its highly progressive income-tax system that relies heavily on hitting the higher-income earners to fund their government.  As the state has been discovering for the past few years, it’s a recipe for amplifying disaster in an economic downturn:

Gov. Jerry Brown wants to hit California’s highest-income taxpayers with billions of dollars in new taxes, and is jousting with other groups with their own tax-the-rich measures over which, if any, will win voter approval.

But the number of Californians with $500,000-plus annual incomes declined dramatically from 2007 to 2009 as the state’s economy stagnated, leaving fewer to tax, the California Taxpayers Association points out in a compilation of data from the Franchise Tax Board.

The latest FTB statistical report covers the 2009 tax year, and Cal-Tax points out that it listed just 98,610 California tax returns with adjusted gross income of $500,000 or more, down nearly a third from the 146,221 in 2007. Data for 2010 are not yet available.

Brown wants to do exactly what Obama proposes on a national basis — to increase revenues by hiking taxes even further on a declining class.  Both talk about paying a “fair share,” but as the Sacramento Bee reports, the 0.5% of Californians who qualified for the current class-warfare treatment in 2009 accounted for 18.8% of all taxable income in the state — and 32% of all income taxes paid.  That’s hardly an issue of the higher income earners failing to pay a “fair share.”

Plus, no one is quite sure why the number of the $500K+ filers dropped by a third.  The downturn certainly has something to do with it, but it might also be that the highest income earners have a greater ability to relocate to a more friendly state.  Either way, thanks to the heavy progressive tilt of the income tax system, the state is much more vulnerable to economic downturns, especially when it comes to capital gains income in a year where capital gains are difficult to produce, as the Bee notes:

At one time, the top 1 percent of California taxpayers accounted for half of the state’s income tax revenues but their incomes, tied to stocks and other capital markets, declined the most of any income class and currently, state officials say, they are believed to provide about 37 percent of the state’s income taxes. That decline accounts for much, if not most, of the state’s revenue declines in recent years.

Those with adjusted gross incomes of $400,000 or more paid $25.7 billion in state income taxes for 2007, but two years later, that had dropped to $12.3 billion. Their taxable incomes had declined from about $278 billion to $156 billion.

Instead of having a broad-based, flatter tax structure that would produce income roughly similar to gains or losses in the economy, California’s top-heavy system produces a series of boom-or-bust revenue cycles that make long-term budget planning nearly impossible — as California’s chronic budget woes demonstrate.  Only those who lack sense or are ideologically committed to class warfare would fail to learn the clear lesson from California’s example.


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There is no hope for these fools in CA. They see what is happening to thier state and they keep electing the people doing it to them. Some times you can use the excuse that “no one else was running”, but they just had a chance to get a common sense Governor and Senator in one election. And it’s not like Whitman and Fiorina are far right conservatives. They probably don’t even rise to the level of RINO. They’re something like a Blue Dog Democrat (fake conservative). BUT! They are 100% better than moonbeam and Ms. don’t call me Ma’am.

Alabama Infidel on February 14, 2012 at 3:13 PM

We have a growing market here for folks buying a broken down house trailer on some small lot (about 15k in this area) and still living in Ca but declare this their residence. Less than their tax bill there for a single year.

CommentGuy on February 14, 2012 at 2:23 PM

I am not sure that works. Unless ALL their income is outside of CA this should work, but moving a legal residence to another state without also moving your income to that said state will simply cut your CA tax bill a bit, but not by much.

riddick on February 14, 2012 at 3:13 PM

Once my elderly mother passes on, I hope to leave CA for someplace sane. Moving her is out of the question.

jodetoad on February 14, 2012 at 3:05 PM

That is very sad. For her sake don’t let her know you feel this way. But I sympathize entirely. Now that I think about it, it makes me angry. As Califoria goes, so goes the nation as they say. And let’s face it, getting old in Texas doesn’t look that great when you figure in the property taxes that never cease.

DanMan on February 14, 2012 at 3:14 PM

Anyone remember the fable of the golden goose? When the politicians in California learn that they need to cut spending? Perhaps about the time when the illegals push for a referendum on making California part of Mexico…………which might happen in my lifetime.

SC.Charlie on February 14, 2012 at 3:15 PM

CA must be spending more than it takes in if they’re broke.

Kissmygrits on February 14, 2012 at 3:19 PM

There is no hope for these fools in CA.

Alabama Infidel on February 14, 2012 at 3:13 PM

To these “fools” you and I are actual dolts, and they are right in thinking that. These “fools” do not work, simply collect what you and I contribute to their public handouts. Tell me just why these “fools” should not elect those that make their dream of ever NOT working become a reality? Let me see, get pregnant from, say, 7 or 8 guys you meet at some bar, collect hundreds of dollars for EACH CHILD from the state and other various public dole perks, why work at all if this money can rent a really nice house with a pool and buy a nice car.

WE are the fools by allowing this BS, no wonder CA “voters” chose liberals and liberal fleece the working class to keep this eternal machine going.

riddick on February 14, 2012 at 3:20 PM

Perhaps about the time when the illegals push for a referendum on making California part of Mexico…………which might happen in my lifetime.

SC.Charlie on February 14, 2012 at 3:15 PM

As screwed-up as this sound, I bet half of the legislature out there would vote for it.

Alabama Infidel on February 14, 2012 at 3:21 PM

Alabama Infidel on February 14, 2012 at 3:13 PM

I can see their problem though Alabama. In Houston we have elected liberal mayors three terms in a row (going on 14 years). During the hayday of the Votings Rights Act they made us go to a lot of at-large council seats so both the mayor and her cabal of lefty council members have driven our pension costs through the roof. We have one Hearst newspaper in town that will not report the issues of finances.

The wife and I have been eyeing south Alabama for a couple of years actually. What’s it like there tax wise?

DanMan on February 14, 2012 at 3:22 PM

Hmm, so I fail to see what I don’t GET. Again, the people that live there keep electing Dems to the state legislature and governorships and they have been for the last 20 years. This is happening even though everyone knows the people responsible for running the state into the ground and basically bankrupting it are Dems. So please tell me what I don’t get.

You’re wrong everyone knows it’s Bush’s fault.

tinkerthinker on February 14, 2012 at 3:22 PM

Brown wants to do exactly what Obama proposes on a national basis — to increase revenues by hiking taxes even further on a declining class.

You’re saying the wealthy are a declining class? That statement is completely inaccurate. The consolidation of wealth or overall control of wealth among the top 1% has in no way abated on a national basis.

If you didn’t notice, silicon valley is coming back and IPOs are on the rise again. The California wealth effect isn’t a story of the past.

As for the cause of California’s rise and fall economically, Larry Ellison, Steve Jobs, Zuckerberg,and Larry Page would completely disagree with you. Funny how the armchair observers always claim to be smarter and more knowledgeable than the great entrepreneurs and capitalists of this world.

bayam on February 14, 2012 at 3:22 PM

About 15 years ago, when the first wave of businesses and people moved here to Colorado from CA, the biggest selling bumper sticker was “Don’t Californicate Colorado”. That population influx is probably a big reason Colorado has turned heavily Dem (mainly Denver and Peoples’ Republik of Boulder). Looks like they’ve finally royally Californicated themselves.

dentarthurdent on February 14, 2012 at 3:23 PM

You’re saying the wealthy are a declining class? That statement is completely inaccurate. The consolidation of wealth or overall control of wealth among the top 1% has in no way abated on a national basis.

If you didn’t notice, silicon valley is coming back and IPOs are on the rise again. The California wealth effect isn’t a story of the past.

As for the cause of California’s rise and fall economically, Larry Ellison, Steve Jobs, Zuckerberg,and Larry Page would completely disagree with you. Funny how the armchair observers always claim to be smarter and more knowledgeable than the great entrepreneurs and capitalists of this world.

bayam on February 14, 2012 at 3:22 PM

You’re not very bright if you can’t distinguish between what Ed said and the drivel you posted.

Hint: a growing % of a shrinking pie = a shrinking amount of pie. Put another way doesn’t matter how much consolidation the 1% has or hasn’t done. There is less overall money to tax from the 1%. Or in this case the 0.5%.

angryed on February 14, 2012 at 3:31 PM

Once my elderly mother passes on, I hope to leave CA for someplace sane. Moving her is out of the question.

jodetoad on February 14, 2012 at 3:05 PM

That is very sad. For her sake don’t let her know you feel this way. But I sympathize entirely. Now that I think about it, it makes me angry. As Califoria goes, so goes the nation as they say. And let’s face it, getting old in Texas doesn’t look that great when you figure in the property taxes that never cease.

DanMan on February 14, 2012 at 3:14 PM

Unfortunately, Dan, I have let my parents know. They put the house into a trust specifically to protect against excessive taxation, but I’ve told them that as soon as they’re cold and in the ground, I’m outta here. I may not bother with Texas- it might be Montana, or one of the Dakotas. All I know is I can’t deal with the absolutely insane political situation here anymore.

BillH on February 14, 2012 at 3:32 PM

you can’t let those living off of entitlements vote, it is like the administration giving them $30k to vote them back in! It is a bribe, graft, payola and anyone giving this amount of cash out for votes privately would be in jail.

rgranger on February 14, 2012 at 3:33 PM

You’re saying the wealthy are a declining class? That statement is completely inaccurate. The consolidation of wealth or overall control of wealth among the top 1% has in no way abated on a national basis.

bayam on February 14, 2012 at 3:22 PM

Did you not read the whole article? The statistics presented show the wealthiest people in California losing money or leaving the state. Nowhere in the article does it say anything about the wealthy declining across the entire country. If Moonbeam gets his way, more of the wealthy who pay most of California’s taxes will leave. And if Obummer gets his way that will happen to the US as a whole – to the extreme detriment of the entire country.

dentarthurdent on February 14, 2012 at 3:34 PM

Anyone feel like turning up “California Uber Alles” by the Dead Kennedys right about now?

teke184 on February 14, 2012 at 3:37 PM

bayam on February 14, 2012 at 3:22 PM

You are clearly up to your bosom in floodwaters, looking up at the pyramids.

But at least it is settled: you are stupid AND dishonest.

Adjoran on February 14, 2012 at 3:38 PM

Only those who lack sense or are ideologically committed to class warfare would fail to learn the clear lesson from California’s example.

You might have well have just said “liberal Democrat.”

Marxism is for dummies on February 14, 2012 at 3:53 PM

I like the old joke from the 2010 elections.

What’s the difference between the HMS Titanic and the state of California?

The passengers on the Titanic did not vote for the Captain to run into the iceberg.

bugsy on February 14, 2012 at 3:57 PM

Did you not read the whole article? The statistics presented show the wealthiest people in California losing money or leaving the state. Nowhere in the article does it say anything about the wealthy declining across the entire country. If Moonbeam gets his way, more of the wealthy who pay most of California’s taxes will leave. And if Obummer gets his way that will happen to the US as a whole – to the extreme detriment of the entire country.

dentarthurdent on February 14, 2012 at 3:34 PM

Absolute fantasy. You have very little understanding of what drives wealth creation in California. It’s driven by tech and innovation cycles that can’t be captured in several years of data. Tax rates are not a factor.

All that the stupid Californians can do is continue driving innovation, accumulating massive wealth, and creating high growth industries and new jobs. And the right wing can complain about how it’s not true capitalism. Whatever.

You might have well have just said “liberal Democrat.”

Marxism is for dummies on February 14, 2012 at 3:53 PM

Go invest in Glenn Beck and Joe the Plumber. I’ll pick liberal idiots like Reid Hoffman and Mark Zuckerberg. Let’s see who wins.

bayam on February 14, 2012 at 4:04 PM

Hint: a growing % of a shrinking pie = a shrinking amount of pie.

Practically no one at Facebook or Zynga or LinkedIn earns $500k per year- yet many of these employees have net worths exceeding $10mil. Zuckerberg’s salary is $1 per year. The same general rule applies to dozens of companies that have either gone public or will IPO in the next 12 months.

And you may dislike those idiots in Hollywood, but their industry is also thriving and continuing to grow as demand from Asia continues to expend.

Wealth creation in California is accelerating, not stalling or falling.

bayam on February 14, 2012 at 4:09 PM

I’m all for California taxing everyone in Hollywood at outragious rates. Go ahead, take 90% of everything over a million. I really want to see how those actors and stars react then.

AnotherOpinion on February 14, 2012 at 4:10 PM

I am a California resident who happens to own a Nevada Corporation. I pay all the appropriate taxes but have finally convinced my wife there is no hope left for this state and we will be leaving by the end of the year. We will still keep a home here for time away, but our residency will change to NV. So all the taxes both my wife and I have been paying (except property) will soon be gone from Califronia’s greedy/ insanely stupid hands.

She was born here and I was raised here except for 4 years in Nevada but I’ll be damned if I’m going to be a target anymore. I work 7 days a week with most days starting by 4:30am and the state as well as the bayam’s can GFT.

No more…

theblacksheepwasright on February 14, 2012 at 4:26 PM

I can see their problem though Alabama. In Houston we have elected liberal mayors three terms in a row (going on 14 years). During the hayday of the Votings Rights Act they made us go to a lot of at-large council seats so both the mayor and her cabal of lefty council members have driven our pension costs through the roof. We have one Hearst newspaper in town that will not report the issues of finances.

The wife and I have been eyeing south Alabama for a couple of years actually. What’s it like there tax wise?

DanMan on February 14, 2012 at 3:22 PM

In Alabama, even when the dems are in charge, they tend not to get too crazy with taxes and income and total taxes have remained low. As for property tax, I think there is only one or two states with lower property tax. I have a beach condo on Orange Beach that I rent out. About two miles down the road in Florida, the taxes on a condo of the same value is about 3 times as much. By the way, I misspoke. I don’t really own the condo, Chase Bank owns it, but they have assured me that if I pay them every month for the next 30 years, I can have it.

Alabama Infidel on February 14, 2012 at 4:26 PM

Obama and Brown are from the same class of STUPID. And you can’t fix it.

GarandFan on February 14, 2012 at 4:46 PM

Who could have possibly seen this coming aside from anyone who studied progressive socialist tax policy wherever it has been applied.

Capital is fleeing California at an accelerating rate and has been for a long time. A shame really as the state has all the advantages it could possibly wish for, but the electorate has poleaxed itself time and time again. The re-election of Moonbeam has no doubt accelerated the exodus.

CorporatePiggy on February 14, 2012 at 4:46 PM

all you Kalifornians considering moving to conservative states, leave your failed liberal policies on the west coast

burserker on February 14, 2012 at 4:52 PM

Absolute fantasy. You have very little understanding of what drives wealth creation in California. It’s driven by tech and innovation cycles that can’t be captured in several years of data. Tax rates are not a factor.

bayam on February 14, 2012 at 4:04 PM

Typical for a lib you run to an apples to oranges argument. I understand all about what drives creation of wealth – and it has NOTHING to do with the government. What the government does is stifle creation of wealth and confiscate the fruits of those efforts. And the mass exodus of companies away from California is proof of what happens. You’re the one living in fantasy land if you really believe the government can continue to keep increasing taxes and regulations and expect people to keep taking it.

dentarthurdent on February 14, 2012 at 5:00 PM

I live in California and have been forced to watch what used to be a lovely state degenerate into a sewer. If I could leave, I would.

Don’t worry, though. If Obama gets a second term, the whole country will get to enjoy the same conditions. Roger Hedgecock said it right. We here in California are living in Obama’s second term.

hachiban on February 14, 2012 at 5:07 PM

Bayam-please explain why the more CA taxes and heaps regulations upon its citizens it loses population. And why are low tax states like Texas increasing in population?
You should really take your head out of the sand. Liberal=delusional.

Ta111 on February 14, 2012 at 5:09 PM

dentarthurdent on February 14, 2012 at 5:16 PM

I submitted another post before this one, but it seems to have gotten lost in ethernet….
The above links are about companies leaving California at record rates.

Get a clue bayam.

dentarthurdent on February 14, 2012 at 5:20 PM

Bayam-please explain why the more CA taxes and heaps regulations upon its citizens it loses population. And why are low tax states like Texas increasing in population?
You should really take your head out of the sand. Liberal=delusional.

Ta111 on February 14, 2012 at 5:09 PM

First, I’m not defending the welfare or pension programs in California that contribute to its debt. I’m simply stating that Ed’s claim of wealth loss in the state is based on cherry picking numbers that conform to his story line.

The creation of wealth in California is accelerating, as evidenced by the ongoing investments in venture capital firms in the state and massive influx of wealth with every tech IPO- and the IPO season is only beginning.

As for a simple comparison of two states, I agree that Texas has lower taxes and entitlement spending (esp pensions) that make it more appealing to businesses. However, there’s no evidence that California’s progressive tax system discourages business development (that issue differs from high taxes). And Texas is no threat to CA growth industries and monopolies such as Hollywood, and high growth companies in silicon valley.

Of course, I could also say that Australia’s and Germany’s high tax rates prove that high tax policies produce job growth and strong export economies. That’s not true of course- the world can’t be described through simplifications.

bayam on February 14, 2012 at 5:32 PM

Alabama Infidel on February 14, 2012 at 4:26 PM

we like the original Romar House down there. Oldest place on the redneck riviera built in 1924 I think. We had a room scheduled before the BP deal and took it anyway even they allowed a refund. What an experience watching that shiz unfold what with SEIU patrol on the beach in full Tyvek, boots, glasses, etc. while everybody around them were in bikinis and beach wear. I’m certain a 4 year old with spoon and a plastic bucket and a promise of chocolate could find more tar than those rubes were finding. We ended owning the whole house for 4 days for the price of the room so we paid for the best they had. The FlorAbama was still being put together from previous hurricanes but open.

I was so bummed for the people that had set up for the summer. The balloon and music festivals were ready, the restaurants were open, it was about as nice as it could be and the national news was just pounding them with pictures of huge waves of sludge that I never saw. I hear its all good again and sure hope those folks are doing much better.

DanMan on February 14, 2012 at 5:34 PM

Here is an example of why we here in CA are so screwed up:

San Francisco is preparing to “provide” dog dropping DNA testing in order to fine the right perpetrator of the poop! (would that be a poop-etrator) Can you believe this? Talk about waste! (pun intended)

JeffVader on February 14, 2012 at 5:37 PM

bayam on February 14, 2012 at 5:32 PM

Care to provide some links for actual proof of your claims?
A simple google search shows significant evidence to the contrary – companies are LEAVING California in record numbers. Investment in the state is NOT increasing. In case you don’t understand – “divestment” doesn’t mean the same thing as “investment”.
You’re cherry-picking individual stories of IPOs like Facebook and pretending that shows total growth and sunshine and rainbows for the state. For those companies that are still in California, you might want to look at where they actually claim their revenue is made and where they put their money.

dentarthurdent on February 14, 2012 at 5:44 PM

Classic Hot Air story! False premise on baseless interpretation of data. It’s as if you read:

Economists believe that most of the decline reflects lower incomes, rather than an exodus of high-income taxpayers from the state, but there are no hard data on that point.

…but just totally ignored it.

Just keep pitching the old trickle-down nonsense, and watch support for your delusional ideology continue to crumble.

Constantine on February 14, 2012 at 5:46 PM

the national news was just pounding them with pictures of huge waves of sludge that I never saw. I hear its all good again and sure hope those folks are doing much better.

DanMan on February 14, 2012 at 5:34 PM

It was pretty normal most of that time. I walked up and down that beach throughout that whole time and we saw just 2 small tar balls. The media should be sued for what they did.

Alabama Infidel on February 14, 2012 at 5:47 PM

Investment in the state is NOT increasing. In case you don’t understand – “divestment” doesn’t mean the same thing as “investment”.
… individual stories of IPOs like Facebook and pretending that shows total growth

I didn’t post links because I’m not the one claiming massive divestment in the state. Ed proposed that you can measure wealth and investment in the state by counting the number of individuals who earn over $500k. For many reasons cited above, this approach is highly inaccurate.

Do you actually believe that Facebook is the only high tech growth story in silicon valley? Or that bio tech companies are leaving California for Texas?

bayam on February 14, 2012 at 5:54 PM

http://blogs.wsj.com/venturecapital/2011/08/04/interactive-map-the-united-states-of-venture-capital/

So terrible, to have so much domination.

bayam on February 14, 2012 at 5:58 PM

Classic Hot Air story! False premise on baseless interpretation of data. It’s as if you read:

Economists believe that most of the decline reflects lower incomes, rather than an exodus of high-income taxpayers from the state, but there are no hard data on that point.

…but just totally ignored it.

That’s interesting.

http://blogs.sacbee.com/capitolalertlatest/2012/02/californias-high-income-taxpayers-have-dropped-sharply.html?utm_source=dlvr.it&utm_medium=twitter#mi_rss=Latest%20News

bayam on February 14, 2012 at 6:01 PM

The flight of the wealthy is why the democrats are trying to expand federal govt.. For example, obamacare would be the same burden on every business regardless of the state where operated. There many more areas but this is just a comment not a dissertation. When a company relocates to a business friendly state, they leave most of their employees behind as tax consumers rather than the tax generators that they were. The govt. can give them jobs in govt. but that exacerbates the problem. It is a one, two, punch to the budget.

dunce on February 14, 2012 at 6:04 PM

Re: Constantine on February 14, 2012 at 5:46 PM

The point of the “Classic HotAir” is this:

Instead of having a broad-based, flatter tax structure that would produce income roughly similar to gains or losses in the economy, California’s top-heavy system produces a series of boom-or-bust revenue cycles that make long-term budget planning nearly impossible

California is so reliant on taxes from high earners that its revenues vary wildly with economic conditions; a small contraction in GDP produces a multiplied impact on tax revenue. Which causes the legislature to raise taxes on the rich, becoming even MORE reliant on high earners. When economic conditions recover, tax revenues increase much more than the growth in GDP, which the legislature just spends on new programs. So, at the next economic downturn, those wealthy folks have a LOT less income so the state budget takes a hit far more substantial than the economic contraction and gets even further out of balance. And this causes liberals to want to tax the rich and become even MORE reliant on high earners.

Lather rinse repeat. But this cycle can’t be sustained forever.

DaveO on February 14, 2012 at 6:04 PM

Just keep pitching the old trickle-down nonsense, and watch support for your delusional ideology continue to crumble.

Constantine on February 14, 2012 at 5:46 PM

And you can keep believing in liberal fairy dust and unicorns and when the successful people and companies have left, you’ll be wondering what happened.

Why do you think incomes at the top level are down in California? Yes the economy has a lot to do with it, but other states are rebounding faster. The fact remains that companies are leaving that sorry-a$$ liberal state in droves and you libs just can’t seem to figure out why.

dentarthurdent on February 14, 2012 at 6:08 PM

I didn’t post links because I’m not the one claiming massive divestment in the state. Ed proposed that you can measure wealth and investment in the state by counting the number of individuals who earn over $500k. For many reasons cited above, this approach is highly inaccurate.

Do you actually believe that Facebook is the only high tech growth story in silicon valley? Or that bio tech companies are leaving California for Texas?

bayam on February 14, 2012 at 5:54 PM

No, but you’re the one claiming everything is just peachy in good old lib-Cali – so I would expect you to provide some basis for your claim.

Is FB the only success – no. Are some companies still hanging on in Cali – yes – and how they are doing depends on the type of business they’re in.
Are lots of companies, bio-tech or otherwise leaving – yes. See my links above.

dentarthurdent on February 14, 2012 at 6:11 PM

Why do you think incomes at the top level are down in California? Yes the economy has a lot to do with it, but other states are rebounding faster. The fact remains that companies are leaving that sorry-a$$ liberal state in droves and you libs just can’t seem to figure out why.

dentarthurdent on February 14, 2012 at 6:08 PM

Yes, all those idiots- Larry Ellison, Steve Jobs, Marc Benioff, Eric Schmidt, Zuckerberg and the rest of the high tech industry based out of California. Luckily right wingers are too busy following Glenn Beck or Google would land in the trash bin of history. You can hate Hollywood, but it remains one of the nation’s great exporters both of American goods and cultural influence.

So keep on whining, but someone has to innovate technology of the future and build high growth companies within the USA, while ensuring that search engines, social networking, and general software companies are dominated by Americans and not Chinese or other foreigners.

bayam on February 14, 2012 at 6:59 PM

Is FB the only success – no. Are some companies still hanging on in Cali

Yes, Facebook, Genentech and other dominant companies in the world’s fifth largest economy are “barely hanging on” as the state continues to attract nearly half of all venture capital invested in the USA. And that figure is growing in 2012.

It’s not that there aren’t serious problems with out of control state spending and pensions, but to question the future of the state’s economy is pointless.

bayam on February 14, 2012 at 7:03 PM

Very soon, Cali will be nothing more than a haven for illegal aliens and porn studios.

Hey! Illegal alien porn. They have to generate money somehow.

Seriously, though, people with common sense and no liberal tendencies should leave the state for greener pastures. Let Cali rot.

madmonkphotog on February 14, 2012 at 7:33 PM

Pretty much the same thing happened here is Oregon after voter approved measures passed imposing a 2 year temporary income surtax on high earners.

The result was that the number of people in that tax bracket decreased by about 1/3.

On the left-wing Blue Oregon blog one reaction to that was that it was a good thing that there were fewer “rich” people in Oregon.

WTF?

schmuck281 on February 14, 2012 at 10:12 PM

Perhaps about the time when the illegals push for a referendum on making California part of Mexico…………which might happen in my lifetime.

SC.Charlie on February 14, 2012 at 3:15 PM

As screwed-up as this sound, I bet half of the legislature out there would vote for it.

Alabama Infidel on February 14, 2012 at 3:21 PM

Hmmm… can *we* vote for that, too? This might be a case of “the sooner the better”, for the rest of us anyway…

Midas on February 15, 2012 at 1:18 AM

It’s not that there aren’t serious problems with out of control state spending and pensions, but to question the future of the state’s economy is pointless.

bayam on February 14, 2012 at 7:03 PM

Take off your liberal blinders and get a clue about what you just said. This entire thread is specifically about California’s future and what it means for the rest of the country. Spouting names of successful business people is completely irrelevant to the discussion. So what if many of the high tech startups happen to be in California – for now. That’s because Silicon Valley is where it started so that’s where the core of applicable labor force happens to be. To question the future of California is EXACTLY the point because the state government is doing their best to drive out the successful companies. The exodus has started and it will accelerate as high tech business centers evolve in other states that are more business friendly. Keep watching the business news – I’ll bet many of those “geniuses” you keep name-dropping will eventually be located elsewhere.

dentarthurdent on February 15, 2012 at 10:21 AM

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