Posted by: Scott Groves | January 17, 2012

Thank god – Governor Brown has a plan

Channel 7 news, who apparently received a copy of Governor Jerry Brown’s State of the State speech early, is reporting the following:

Gov. Jerry Brown will deliver the State of the State address at 10am PT.  He will be making the case for higher taxes to fund schools, public safety and other services.

Really?  Really?  Higher taxes to pay for schools, police officer, fire-fighters and social safety nets?  Haven’t we heard this pitch before?  Aren’t property taxes, income tax rates and our sales tax the highest in the union (cumulatively).

Right now Californians pay roughly 1.25% in property taxes (based on currently assessed value), 10% in sales tax and upwards of 10% in income taxes.  Of course, these taxes all come after working Americans pay anywhere from 10-35% of their income to the Federal Government.

Now the Federal Government, in its crusade against ‘millionaires’ and ‘billionaires’ is trying to get the top Federal tax rates pushed to 38%.   California will apparently try to push its top tax rate to 12% while also raising the sales tax by 1%.

As much as President Obama and Jerry Brown like to rant about millionaires and billionaires don’t pay their fair share, much of the higher tax rates being proposed are against anyone who makes over $250,000 a year.

To those who live in areas of the country where you can buy a nice home for $250,000… this figure may appear totally fair and clearly represents someone who is rich.

Yet, once we realize that income taxes, sales tax, car registration, property tax, cell phone tax, licensing fees and other usage taxes destroys about 50 cents on the dollar of everything a Californian earns, and we know that Southern California is one of the highest cost areas in the country, $250,000 isn’t a lot money to raise a family on while still saving for the future.

I ready daily stories about how companies and wealthy Californians are leaving the state.  By continually raising taxes, instead of cutting spending, the State Government is driving its tax payers to other states.

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