lorddarley

California's Default Is Certain

Ho, hum. Here's finger wagging at the US from a fellow who lives in a country with 35 million people, one-tenth of our number. How about loaning our next 30 million immigrants to Canada?

It's a national problem of the US, and California is bearing the brunt of it. If only the California problem could be traced to "fat cats" not paying their share, as the autor suggests. Sadly, there aren't enough fat cats to go around, and those who do still stay in California should be encouraged to stay,and to keep their assets in California.

California's problems stem from (1) its horrendous immigrant problem, (2) an overpaid, corrupt class of politicians and civil "servants," and (3) a tax structure that would keep any fiscally sane person from moving to the state, or staying there.

California has a graduated tax rate, starting at 1%, capturing most of the middle class at 9.3%, and taxing those over $1 million at 10.3%. Sales taxes vary by county, and are 9.75% in San Diego County and Alameida County, and over 10% in parts of the state. You don't think that causes fat cats to do arithmetic and plan an exit? How much higher do you want the rates to be?

If there is a "free ride," it's for homeowners (and I'll submit most are not "fat cats" and just want to keep their homes). In California, property only gets assessed when it changes hands. It's an "everyman's" tax break, not a handout to the wealthy.

I agree that California cannot possibly honor its governmental obligations. The problem does not stem from tax breaks to the wealthy. It's systemic. No country can provide 21st century medical care and benefits to this many new people.

Because the immigrant class is actually a source of wealth and jobs for civil servants and politicians, in Sacramento and washington, democracy isn't working in California. So California will go broke, and after other communities do the same, we will eventually elect politicians who listen to the people and fix this mess.