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Why Is California Broke?

Inquiring minds are asking "Why Is California Broke?" It's a good question. Please consider ...

California has the 3rd highest state income tax in the nation: 9.55% tax bracket at $47,055 and 10.55% at $1,000,000 - Tax Foundation 2010 State Business Tax Climate Table 2
California has the highest state sales tax rate in the nation by far at 8.25%. Indiana is next highest at 7%. Table 15

California corporate income tax rate is 17th worst in the nation with a rate of 8.84%. - However, of the non graduated states, only Pennsylvania at 9.99%, Rhode Island at 9.0%, and the District of Columbia at 9.98% are higher. One size fits all (and a very high one at that) is exceptionally hard on small businesses. Table 8 and Table 2


California ranks 13th best in property taxes. However proposition 13 causes massive distortions for new buyers. Table 2

California has the fourth highest capital gains tax 9.55%. - Capital Gains Tax Rates By State

California has the highest gasoline tax as of January 2010, averaging 65 cents/gallon. The national average is 47.4% - API Motor Fuel Taxes

California has one of the highest state vehicle license car taxes, 1.15% per year on value of vehicle, up from 0.65% in 2008. [expired link]

So where's the money going?

1 in 5 in LA County receiving public aid, nearly 2.2 million people as of February 2009. 20% in Los Angeles County receive public aid

California has 12% of the nation’s population, but 36% of the country’s TANF (“Temporary” Assistance for Needy Families) welfare recipients – more than the next 8 states combined. Unlike other states, this “temporary” assistance becomes much more permanent in CA. July, 2009 California has more recipients in key welfare category than next eight states combined.

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Because the government spends more than they steal.

bye bye california

I grew up in california. Beautiful state. But my wallet is much happier in Texas. One of my best friends stayed, but he works for the state govt of course.

Uncontrolled Population Growth!!!

plain and simple!!


The population is leaving the state.

What do you think? http://consequeries.com/

The "productive" population

is leaving the state. Most of the ones left are on welfare and don't pay much into the "system." California will have to tax the productive even more. A friend at work was telling me that California wanted Department of Motor Vehicles workers to work one day a week for free!
I thought we abolished slavery!?


Not sure what you mean

Not sure what you mean "Nope". Just because the population is MAYBE a few hundred people less than last year doesn't negate the fact that the population has more than doubled since the 60s, when California was the envy of the world. It took 100 years to get to 10 million people, yet they added 10 million people in the past 20 years.

We Still Have Plenty of Room

Post WWII, men who shipped out from California ports and came back alive, settled here and had kids. We were building schools like crazy, and then began to close them after the boom was past. We have room for more people, but the cost of living here (in regulations, not just money) is through the roof.

Prop. 13 protects people from losing their homes due to uncontrolled property taxes, but the other taxes are horrendous. (If it weren't for Prop. 13, seniors would have long since been out on the street due to the housing bubble pricing them out of their homes.)

The problem is we have a government that is bigger than most countries and huge overhead in the form of government employees and their retirement benefits. Worse, they're all tied to inflation, so when the rest of us have less money due to inflation, they get more. The prison population is huge, too.

It's a bad place to do business. It'll have to get worse before it gets better. And the boomers are starting to retire. California is basically ahead of the curve; it's the canary in the coal mine -- be warned. (Remember the dot.com bust? Housing prices went bust, then, too.)

But the weather is great, especially along the coast!

What do you think? http://consequeries.com/


Very well put,my family came to Ca. in 1912,and now the ones that are left are moving out as fast as they can.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

grapes of wrath?




$375,000 per unit - Holy Crap!

I realize this is San Francisco, but still, $31,124,115 for 83 units? Also, given that this project would happen regardless, I'm sure the homeless people are glad they made it environment friendly rather than have more units or cheaper rents.


You have touched on a subject that I can give you all the answers to,I am currently shutting down a truck repair store in Ca because I can no longer afford to operate it in Ca.
Ca.has made a bed that business cannot sleep in.For the last 10 years it has been a trend for businesses to move out of Ca.to other countries and states,so in turn they are not getting a tax base or job base to support the economy no matter how high the taxes are.
Why are they moving out?Taxes,vehicle licence fees,insane environmental laws that take all your profit to comply to.
Ca.'s idea of job creation is to create government jobs whether they are needed or not,in our county alone 20 percent of the population is employed by the county government.At the state level 12%.
Waste is another reason,There is a state highway maintenance yard across the street and I went to school with these guys,they are disgusted with the waste,for example:Twice a month they sent a large environmental truck 10,000 gln tanker(subcontracted)to pick up their waste oil.It comes 120 miles one way the cost is estimated at about 2000 dollars,how much oil does it pick up? 20-30 gallons!
Their own environmental requirements are killing everyone including themselves.
I have yet to go into the issues of welfare and Illegal immigration sucking whats left away.
It will soon be a state with no tax payers and 50% will work for the government and the other 50% will be on aid.
We can thank Pelosi,Feinstein,and Boxer for most of this.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

Thanks for your insight

Thanks for your insight Patriot

Follow me on Twitter for breaking news from a libertarian perspective


I have more reasons

But they are somewhat controversial.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

To many

hands in the cookie jar!

Republicae's picture

The U.S. Government is broke,

The U.S. Government is broke, California is simply symptomatic of a broader issue that has yet to surface.


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun