States Fight for Survival : Califorina is Doombed

This article compares California and Texas on the basis of taxes, regulation and attitude toward surviving in a bad economy. The question is will they survive or are they doomed?

There is no rocket science here as all we have to do is look at any large state that is controlled by liberal Democrats and see that they are all in trouble. California and Michigan are perhaps the shining stars for us all to see the success of Democrat control and a good reason not to vote form more Democrats.

Read this and then think about this November 2nd election - what makes more sense? Voting for more failure or voting for common sense. The reality is, voting for more failure means there might not be another chance to vote for common sense in the future. The country its self hangs in the balance.

You decide.


A Trenchant Tale of Two States
Source: "A Trenchant Tale of Two States," Investor's Business Daily, October 14, 2010.

In Texas, the payroll count is back to prerecession levels. California is nearly 1.5 million jobs in the hole. Why such a difference? Chalk it up to taxes, regulation and attitude, says Investor's Business Daily (IBD).

California's business climate is notoriously bad. CEOs polled by the magazine Chief Executive have ranked it dead last for the past five years, with Texas, naturally, ranked first.

To anyone seeking to start an enterprise and hire workers, moving to Texas is a lot less trouble than trying to change California's high taxes, overregulation and not-so-subtle bias against the profit motive.

The difference in tax systems reflects a difference in attitudes toward business and the wealth that business generates.Capital gains are tax-free in Texas; in California, they are taxed up to 10.55 percent. To an entrepreneur choosing where to set up shop, the message is clear: Texas wants to reward success; California wants to tax it. California also has developed a web of regulations that raises labor costs, spurs litigation and ties up building projects indefinitely.

Just how pervasive is the state's antibusiness attitude? Consider a recent story about how some governments in the San Francisco Bay Area are gouging the solar power business, says IBD.
If California officialdom stands for anything, it stands for renewable energy, against Big Oil and for "green jobs." Yet an informal survey by the Sierra Club found that some cities were charging sky-high fees for solar installations on schools, churches, retail stores and other buildings.

That just about says it all -- we're all for solar, but we can't have people making money off it, now can we? As long as California officials can say something like that with a straight face, the state faces a very long slog back to prosperity, says IBD.