Why Is California Broke?Submitted by bobbyw24 on Mon, 01/25/2010 - 08:24
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.