Is California on its way to be coming a 3rd World State?

Jim Carter

California has the top marginal income tax rate of 13.3%. The highest in the nation. Although New York is certainly trying to catch up.

Approximately 150,000 households out of a population of 40 million pay close to 50% of the states total income tax. The high income tax rates won’t be phased out because nearly 40% of the states residents pay no income tax.

They recently approved its extension California has the highest combined local and state sales tax in the country. It applies to goods purchased out of state.

With the federal income tax deduction capped at $10,000, it effectively doubled high income earners tax bill. You would think state legislators would be concerned and try to ease Californians tax burden. No way. Instead they raised the estate tax to 40% on estates with a net worth of $3.5 million for single residents and $7 million on married couples. Result it forces children to sell homes, family businesses and farms to pay tax bill. The result a huge number of middle class tax payers are leaving the state for low tax or no tax states.

What do Californians get for high taxes? Not much! Crumbling infrastructure and schools that rate near the bottom on national state ratings. San Francisco ranks first in property crimes per capita. Close to 25% of the nation’s homeless live in California. Almost 1/3 of the nations population living on public assistance reside in California and 1/5 it’s people live below the poverty line. 1/3 of MedCal recipients are classified as low income people.

California social programs are magnets for indigents from all over the world. 27% of the states residents were not born in the U.S. Recently about 100,000 foreign nationals were stopped at the border. So what’s the problem?

California has more billionaires (124) and millionaires (885,000) than any other state in the country. Shouldn’t this wealth take care of the problem? No! They have so much money and the resources to minimize their taxes, it doesn’t phase them.

The top income tax rate may hurt a family making $400,000/year but if it’s $4 million its a no brainer. The middle class is being systematically destroyed. Venezuela seems to be the California model. Crony capitalists destroying the middle class to subsidize the poor.

I hope you can see why California, a state run by Social Democrats, is the last place we would look for National leadership. Kamala Harris is a product of the system. She would feel equally at home in Venezuela or Cuba.

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