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Topic: Will higher taxes on the rich derail California’s economic comeback? |
Will higher taxes on the rich derail California’s economic comeback?
Washington Post, by Jim Tankersley
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Original Article
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Posted By:Dreadnought, 2/18/2013 9:31:22 PM
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| SAN FRANCISCO — If there’s anyplace in the country where rising tax rates should choke off an economic recovery, it’s California. On top of the federal tax hikes that kicked in last month, the state has just raised income taxes on its wealthiest residents to the highest levels in the nation, a move conservatives warn will drive millionaires and their companies to other states, taking jobs and growth with them. The increases come as California’s economy continues a remarkable turnaround. A year ago, the state was a mess, with double-digit unemployment, a bottoming-out housing market and scary budget deficits
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Reply 1 - Posted by:
john56, 2/18/2013 9:53:21 PM (No. 9183986)
Plus a 60-80c increase per gallon of gas should pretty well put a fork in any recovery in California.
But the moving van business should be doing well.
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Reply 2 - Posted by:
beancounter, 2/18/2013 10:04:37 PM (No. 9183998)
I just don´t see it. Sure the economy isn´t as bad as it was 4 years ago. The unemployment rate has dropped from 12% to 9.8%. It´s still the 3rd worst unemployment rate among the states. But at this rate of recovery it will take many years to get back to where we were in 2006.
As for home prices and the construction industry, home prices are still 30-50% below where they were in 2007. Interest rates are at record lows. When interest rates inevitably go back up construction will slow again.
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Reply 3 - Posted by:
hamrman, 2/18/2013 10:22:59 PM (No. 9184019)
Yes, California need look east ward to Detroit and Michigan to see their future...you can´t raise enough taxes, you have to go back to Reaganomics...cut taxes and spurn investment! Something Obama can´t do because this is not his agenda...he wants bring America down and shows little concern for a real recovery!
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Reply 4 - Posted by:
whyyeseyec, 2/18/2013 10:30:47 PM (No. 9184025)
I don`t know who this idiot is writing this article but Calif economy is not `turning around`. It is as bad as it can get right now. Taxes are sky high, the price of e-v-e-r-y-t-h-i-n-g is on the rise, business and people who can leave are leaving and the state workers pension funds are somewhere in the neighborhood of 500 billion - yes, you heard that correctly - 500 billion dollar in the red, which co-ink-e-dinkly, nobody in the CrapMedia around here ever bothers to mention. All this an Obamacare`s full implementation is right around the corner. When employers in Calif begin taking more money out of their employee`s paycheck`s to cover the increased healthcare costs due to Obamacare, it`ll make that measly $20/wk increase back to 6.2% social security tax look like chicken spit.
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Reply 5 - Posted by:
stablemoney, 2/18/2013 10:49:10 PM (No. 9184052)
The WaPo, full of party and glee from federal spending in their area, now has the chutzpah to tell us how great things are going out in Ca.
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Reply 6 - Posted by:
FL_Absentee_Voter, 2/18/2013 11:12:12 PM (No. 9184086)
So the washington post confirms it: Michelson was right.
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Reply 7 - Posted by:
veritas, 2/18/2013 11:31:48 PM (No. 9184113)
Nope.
Oh -- the policies of California´s "leaders" have, though, relocated much of any recovery to other states.
#2: How much of that "lower" unemployment rate is because the pool of workers has shrunk? That´s certainly a factor in the national figures.
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Reply 8 - Posted by:
KTWO, 2/18/2013 11:44:37 PM (No. 9184134)
Contrary view. CA has no idea of the real unemployment rate. This problem is probably worse in CA because so many imigrants work off the books or have never had a job that makes them eligible for unemployment payments.
In short CA government does not know what its population is. And increasingly it does not know what they are doing.
January is, so far, the only month that state tax revenues looked really good. But a lot of businesses paid their bonus in December to avoid higher federal taxes in 2013. Ditto for dividend payouts.
February state revenues will tell moe but only March and later will indicate the health of the the state budgets.
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Reply 9 - Posted by:
zephyrgirl, 2/18/2013 11:48:36 PM (No. 9184139)
Somehow, I find it hard to believe that California is recovering.
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Reply 10 - Posted by:
Spidey, 2/19/2013 3:16:53 AM (No. 9184238)
The idea of this article is to trick you into believing that a huge tax increase and recovery can co-exist. Never mind that there´s a stampede for the exits with people and business fleeing higher taxes.
This is the same kind of thinking the left spews out there about Bubba raising taxes and it led to an economic boom.
Cal. is a stark example of the left wing governing paradigm. Spend billions on gov´t workers and welfare class,then go to working people with a tin cup in hand.
I imagine it would really take a lot to force people to leave such a state.
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Reply 11 - Posted by:
Trigger2, 2/19/2013 4:15:12 AM (No. 9184256)
The same thing is happening in NY. We´re stuck with Cuomo who goes on tv and says his budget does not increase taxes. It just increases fees skyhigh and all cost increases are passed on to the cities, towns and counties.
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Reply 12 - Posted by:
plumnellie, 2/19/2013 7:47:34 AM (No. 9184413)
It must be more expensive to move a business than it is to pay high taxes else more would leave NY and Calif. Yes, many have but so far the massive exodus has not reached us right to work states. Smart posters please tell me if there are deals made with politicians and businesses...a la GE and Facebook..that let pet businesses not pay taxes.
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