Prior to Prop 30 passing in Nov. 2012, CA already
had the 2nd
worst state income tax rate in the nation. Our 9.3% tax bracket started at $48,942 for people filing as individuals. 10.3% started at $1 million.
Now our retroactive
(to 1/1/2012) “millionaires’ tax” rate is 13.3% – including capital gains (CA total CG rate now the 2nd
highest in the world
!). 10+% taxes now start at $250K.
CA now has by far
the nation’s highest state income tax rate. We are 21% higher than the 2nd
highest state (Hawaii), 34% higher than the 3rd
highest state (Oregon), and a heck of a lot higher than all the rest – including 7 states with zero
state income tax.
CA is so bad, we also have the 2nd
highest state income tax bracket. AND the 3rd
CA has the highest state sales tax rate in the nation. 7.5% (does not include local sales taxes).
CA corporate income tax rate (8.84%) is the highest west of the Mississippi (our economic competitors) except for Alaska.
CA has the nation’s highest gas tax at 71.9 cents/gallon (July, 2013). National average is 49.5 cents.
California in 2009 ranked 15th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But CA property taxes per owner-occupied home were the 10th highest in the nation in 2009.
CA has now instituted the highest “cap and trade” tax in the nation – indeed, the ONLY such U.S. tax. One study estimates the annual cost at $3,857 per household by 2020. Even proponents concede that it will have zero impact on global warming.
Tax Foundation study ranks CA as the 4th worst taxed state. But if counting ONLY in-state and local taxes, we are arguably the 2nd highest.
CA has the 7th
worst state unemployment rate (July, 2013) – 8.7%. National unemployment rate 7.4%. National unemployment rate not
including CA is 7.2%, making the CA unemployment rate 20.5% higher than the average of the other 49 states (one of the best performances we’ve managed in several years). http://www.bls.gov/web/laus/laumstrk.htm
Using the 2nd
quarter 2013 U-6 measure of unemployment (includes involuntary part-time workers), CA is the 2nd
worst at 18.3% vs. national 14.3%. National U-6 not
including CA is 13.8%, making CA’s U-6 33.0% higher than the avg. of the other 49 states. http://www.bls.gov/lau/stalt.htm
CA needlessly licenses more occupations than any state – 177. Second worst state is Connecticut at 155. The average for the states is 92.
California’s 2013 “business tax climate” still ranks 3rd worst in the nation – behind New Jersey and New York state.
CA public school teachers the highest paid in the nation. CA students rank 48th in math achievement, 49th in reading.
1 in 5 in Los Angeles County receiving public aid.
California’s real poverty rate (the new census bureau standard) is by far the worst in the nation at 23.5%. We are 55.7% higher than the average for the other 49 states. The CA poverty rate is 19% higher than 2nd place Florida.
California has 12% of the nation’s population, but 33% of the country’s TANF (“Temporary” Assistance for Needy Families) welfare recipients – more than the next 7 states combined. Unlike other states, this “temporary” assistance becomes much more permanent in CA.
California now has the 2nd lowest bond rating of any state – Basket case Illinois recently beat us out for the lowest spot. We didn’t improve our rating – Illinois just got worse.
CA is ranked as the “worst-run state” in new Wall St. analysis. CA “won” last year too.
The American Tort Reform Association now ranks CA the “worst judicial hellhole” in U.S. – extremely anti-business. But the U.S. Chamber of Commerce ranks CA higher – “only” the 4th worst state (unfortunately, sliding from 7th worst in 2008).
CA tickets are incredibly high. Red-light camera ticket $490. Next highest state is $250. Most are around $100.
CA has 2nd
highest annual cost for owning a car – $3,966. That's $765 higher than the national average. http://tinyurl.com/lmxnucs
CA has the 3rd
highest state workers compensation rates, up from 5th
in 2010. CA has a 3.4% rate increase scheduled for 2013.
NEW: Average 2012 CA impact fee for single-family residence was $31,100, 90% higher than next worst state. 265% higher than jurisdictions that levy such fees (many governments east of the Sierras do not). For apartments, fee averaged $18,800, 290% above average outside state. Adding insult to injury, this fee is part of the purchase price, so buyer pays an annual property tax on the fee!
California is tied with 3 other states (Hawaii, Texas[!] and Florida) for having by far the least competitive property and casualty insurance markets.
California has a nasty anti-small business $800 minimum corporate income tax, even if no profit is earned, and even for many nonprofits. Next highest state is Oregon at $150. A few others under $100, with most at zero.
California small businesses failed in 2011 at a rate 69% higher than the national average -- the worst state in the nation.
In 2012, our supply of California businesses shrunk 5.2%. In ONE year. NOTE: That's a NET figure – 5.2% fewer businesses in CA in 2012 than were here in 2011. Indeed, in 2012, CA lost businesses at a 67.7% higher rate than the 2nd worst state!
736 top U.S. CEO’s surveyed rank California “the worst state in which to do business” for the 9th straight year (May, 2013).
California, a destitute state, still gives away community college education at fire sale prices. Our CC tuition is the lowest in the nation. How low? Nationwide, the average community college tuition more than double our California CC’s.
This ridiculously low tuition devalues education to students – often resulting in a 25+% drop rate for class completion. In addition, up to 2/3 of California CC students pay no net tuition at all – either filling out a simple unverified “hardship” form that exempts them from any tuition payment, or receiving grants and tax credits for their full tuition.
Protests about increased UC student fees too often ignore one crucial point -- all poor and many middle class students don't pay the “fees” (our state’s euphemism for tuition). There are no fees for most California families with under $80K income.
UPDATED: California residential electricity costs an average of 39.6% more than the national average. CA commercial rates are 58.3% higher. For industrial use, CA electricity is 71.8% higher than the national average (June, 2013).
A 2011 survey of home water bills for the 20 largest U.S. cities found that for 200 gallons a day usage, San Diego was the highest cost. At 400 gal/day, San Diego was third highest.
From 2007 through 2010, 10,763 industrial facilities were built or expanded across the country — but only 176 of those were in CA. So with roughly 12% of the nation's population, CA got 1.6% of the built or expanded industrial facilities.
California is now ranked as the 2nd worst state to retire in. Only basket-case Illinois is worse. We “beat” NY, RI and NJ.
Consider California’s net domestic migration (migration between states). From 2000 through 2009, California lost a NET 1.5 million people. Net departures slowed in 2008 only because people couldn’t sell their homes. But more people still leave each year -- in 2011 we lost about 100,000 net people to domestic out-migration. Again, note that this is NET loss.
These are not likely the welfare kings and queens departing. They are the young, the educated, the productive, the ambitious, the wealthy (such as Tiger Woods) – and retirees seeking to make their pensions provide more bang for the buck.
As taxes rise and jobs disappear, we lose our tax base, continuing California’s state and local fiscal death spiral. This “race to the bottom” must stop NOW.