Comments on: Chart of the day: California taxes http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DanHess http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21691 Wed, 08 Dec 2010 16:03:17 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21691 For a long time California was the reddish state that gave us Reagan, and present tax boundaries locked into California statute are a reflection of this.

As the influence of public unions increased, we moved to our present situation where prison guards in California earn six figures and eye-popping retirement packages are the norm. The result is a rather Greek-like combination of generous public spending and low tax receipts with massive bond sales to make up the difference.

At least California has Google, Apple and wonderful and productive agriculture. Under higher taxes the farms at least would have to stay put.

]]>
By: FifthDecade http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21675 Wed, 08 Dec 2010 05:19:35 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21675 Those numbers are clearly the wrong way round – how would it be less democratic if Federal Tax Rates were in the 5% to 6% range, and State taxes were in the range that Federal Taxes now are? It works that way around in Switzerland, whose Constitution is based on the US one from top to bottom, and Switzerland has as a consequence small out of touch Federal Government and more locally involved State/Cantonal Government.

Business would benefit because it would make States more competitive between each other and reduce the power of Washington, which is what I understand a lot of US folk want. But I guess it would also mean fewer toys for the military, fewer pork bellies for the politicians, and fewer easy contracts for one or two military suppliers so I can’t ever see it happening. Shame though, imagine taxes going down and local services improving! That’s how it works in Switzerland.

]]>
By: MikeMcArthur http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21672 Wed, 08 Dec 2010 04:45:27 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21672 I am unclear what exactly the post asking but if it is how states have managed to cope without the federal grants received over the past 1-2 years without increased state revenue here are my thoughts.

When looking at california entities to find an example of budgets which rely on state revenue, which received a significant amount of the one time federal grants, I think school districts is an apt example. One time federal grant receipts were only minorly replaced by an increase in state revenues. There were many steps taken to replace the missing funds that were temporarily replaced by federal grants. States lowered requirements of students per classroom to receive state funding allowing teachers to be laid off and schools consolidated, state revenues previously restricted for items such as art classes, mentally disabled, and other items were reclassified as unrestricted so as to be able to be used for general budget purposes as well as many other steps. In the end California has not replaced the revenue, but done a mixture of necessary cost cutting, one time boosts or delays of payments, and shady accounting to pass budgets.

]]>
By: Curmudgeon http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21653 Tue, 07 Dec 2010 23:06:33 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21653 One dysfunctional state does not a trend make.

]]>
By: CharlesD http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21640 Tue, 07 Dec 2010 19:43:13 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21640 If there is a correlation between lower Federal taxes and rising taxation at a lower level, it is probably most evident in local taxes. States, like the Federal government, have been in thrall to the low-tax school of economic voodoo. The counties and municipalities end up with all the mandates and no funds. Here’s a link (pdf) to a publication on the rising property taxes which states “Local property tax levies grew by 60 percent from 1995 to 2005, more than twice the rate of infl ation during that period (28 percent). Most of this growth occurred
in the last 5 years – when property tax levies increased by 42 percent, compared to inflation of 13 percent.”

]]>
By: OnTheTimes http://blogs.reuters.com/felix-salmon/2010/12/07/chart-of-the-day-california-taxes/comment-page-1/#comment-21637 Tue, 07 Dec 2010 19:13:54 +0000 http://blogs.reuters.com/felix-salmon/?p=6453#comment-21637 I think that blip during the end of the dot com bubble came from capital gains taxes on people cashing in on IPOs and acquisitions. I know I paid the most taxes in any one year in 2001 for that reason, and I wasn’t alone.

]]>