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View Diary: Why are Gov. Brown and Sacramento Democrats trying so hard to raise taxes on the 99%? (107 comments)

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  •  Well then, why did California grow into the (7+ / 0-)

    economic powerhouse it is?

    The thing is, you will always have carpetbagging corporations scurrying around looking for government offered tax incentives to take advantage of. And the thing about such corporations is, they'll skip town on the likes of Utah and Texas too just a soon as there's a better offer from some other state. They are an unreliable source of economic security.

    That's called giving in to the race to the bottom. I think California has the natural creative environment and has the wherewithal to form a longer term progressive vision to do better then that. The progressive visionaries of the past managed to do it, we can do it again.

    Romney - his fingernails have never been anything but manicured.

    by Pescadero Bill on Fri Feb 24, 2012 at 09:14:39 AM PST

    [ Parent ]

    •  California grew because it was pro-business (1+ / 0-)
      Recommended by:

      Great climate, educated workforce, low land prices, abundant natural resources - all fueled the boom in California from the 1800's until the 1970's.

      But, these policies no longer exist.

      Don't believe me - just google "california business climate" and you will find page after page of negative information about California.

      Workers comp costs have quadrupled since 2000

      Corporate tax structure voted 48th out of 50

      Business climate 51st in the country (includes D.C.)

      Capital borrowing being used to fund current operations

      In 2008, there was a net loss of 144,000 residents - which was the 4th straight year of population loss

      Utility rates are up 40% over the past few years

      The state income tax hits the maximum bracket of 10% at apx $47,000.

      This is in addition to a 8-9% sales tax

      There is an annual fee of $800 to be a corporation in Cali - which means nothing to IBM, but is real to small business

      Compare this to Texas which doesn't have a corporate tax or a personal income tax.  You'd have to be crazy to open a business or expand operations in Cali if you had the choice.

      •  If anything (0+ / 0-)

        businesses are leaving (which, facutally they are not)  because of the hollowing out of the productivity of the state after decades of public underinvestment post Prop 13.

        •  That's not what the businesses are saying (0+ / 0-)

          They complain about over regulation, too much taxation, the inability to function because of regulatory overkill, high land prices & rent, tremendous wait times to receive regulatory approvals,  and to the extent they complain about infrastructure they seem to be complaining about a failure to maintain the existing infrastructure because the money is being siphoned for the Legislature's pet projects.

          Underinvestment in infrastructure is way, way down on the list of complaints.

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