California Losing Billions in Taxdollars to Other States : Common Sense Flees

California is the 'poster child' of failure of American democrat politics and how destructive decades of progressive democrats have been to their economy and to our nation as a whole. It's much easier to see how over-regulation and the loss of individual freedom is when viewed by just watching California implode  now under the leadership of progressive democrats.

The question that remains, given the disaster that is California politics and the results, why would anyone still vote for more democrats? It makes no sense. But then common sense was never the strong suit of the democrat politician or voter. Why have the voters continued to reelect Nancy Pelosi?

Out of the ten largest cities in the country that are in financial trouble, nine are control by democrats and have been for decades. And yet, the democrat politician is reelected over and over again. What drives the voter to ignore first hand evidence of failure, especial those living in California under the boot of progressive socialism?

The only relief the individual has from the suffocating ignorance of the democrats is to flee to states that are not controlled by democrats. dah! The problem here is those that are blessed with some common sense flee leaving the ignorant to their own devices for survival. Sadly, those that remain are not well equipped to make the changes to save their state.

Is California doomed? Hopefully not, but the writing on the wall doesn't bode well for any resurgence of common sense any time soon.

California Should Learn from Texas' Example
Source: Bradley Allen, "A Texas Guide to Economic Recovery," Wall Street Journal, July 6, 2014.

July 9, 2014

Three of the five fastest-growing American cities, and seven out of the top 15, are in Texas, explains former professor Bradley Allen in the Wall Street Journal.

Indeed, Texas is enjoying a booming economy, thanks to a number of factors. Innovations such as fracking and horizontal drilling have led to massive energy production and created new jobs, and lower taxes have pulled companies to Texas. Toyota, for example, recently announced its plan to move its headquarters from California to Texas.

California, Allen writes, could learn from Texas' example:

• Texas has no state income tax, whereas California has a top marginal rate of 13.3 percent, the highest in the nation.
• Electricity prices are 50 to 80 percent higher in California compared to Texas, because of California's renewable-energy mandate.
• Gas costs up to 80 cents less per gallon in Texas than in California, because of the Golden State's blending requirements and higher taxes.
• California loses $492 billion in gross state output each year, purely due to regulatory costs. That is the equivalent of losing 3.8 million jobs annually.

California is not the only one that could take a leaf out of Texas' book. The United States, currently sporting a corporate tax rate of 35 percent, should follow Texas' example and lower both corporate and individual tax rates. Such reforms would encourage investment and immediately make the United States more competitive on a global scale.