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California is dumber than dirt !!!

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  • suesarkis@aol.com
    CA Businesses Enticed to Leave State November 30, 2012 By Josephine Djuhana
    Message 1 of 1 , Nov 30, 2012
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      CA Businesses Enticed to Leave State
      November 30, 2012 By Josephine Djuhana


      (http://www.capoliticalreview.com/wp-content/uploads/2011/07/New-Image-e1311367225309.gif) This year’s Black Friday and other miscellaneous holiday
      sales remind us that in order to entice customers and increase sales
      revenue, the method is simple: cut prices. Eager shoppers will line up in front of
      their favorite stores at wee hours of the morning just to land a good
      deal. People will even buy things from the comfort of their own homes: Online
      sales during this year’s Black Friday surpassed _$1 billion for the first
      time_ (http://mashable.com/2012/11/25/mobile-app-2012-revenue/) . Consumers
      are ready to consume—they’re just waiting for an opportune moment to do so.
      The approach should be the same for states and their governments trying to
      attract businesses. By cutting taxes and doing away with strangling
      regulations, businesses have real incentives to either stay in one state or move
      to another. The concept is simple: Make the business environment attractive,
      and companies and their profits will follow.
      In response to California’s massive tax hikes and new CARB regulations
      being enacted come 2013, Arizona’s business leaders aim to prove that their
      state has more to offer California businesses. The Greater Phoenix Economic
      Council plans to fly in nearly _100 California CEOs for complimentary stays
      and tours of the metropolitan area_
      (http://cronkitenewsonline.com/2012/11/business-leaders-aim-to-capitalize-on-california-tax-hike/) . The Grand
      Canyon state beats our Golden State in every tax rate: State sales tax rounds
      off at 5.6 percent, while California’s sits at 7.5 percent. Arizona and
      California corporate tax rates are at 6.968 percent and 8.84 percent,
      respectively, and—get this—Arizona’s top income tax rate is 4.54 percent, compared
      with California’s whopping 12.3 percent, effective this year with the
      passage of Prop. 30.
      Earlier this year, _Spectrum Location Solutions_
      (http://www.spectrumlocationsolutions.com/) reported 254 companies left California in 2011. That
      includes major tech companies, like Twitter, Adobe, eBay, and Oracle, which
      all packed up for Salt Lake City. In April, Apple announced construction of a
      $304 million campus in Austin, complete with the addition of 3,600 jobs.
      The headquarters for chain restaurants Claim Jumper and Bubba Gump Shrimp
      Co. were both moved to Austin as well. It’s had a huge effect on California’
      s tax revenues, _which plunged by 22 percent_
      (http://www.capoliticalreview.com/top-stories/eureka-california-tax-revenue-plunges-22/) , as reported by
      State Controller John Chiang in early 2012. Add to that our unfunded
      pension liability, bankrupt cities, poorly performing municipal bonds, and you
      have a recipe for disaster for any state.
      It’s also impacted our unemployment rates. With so many businesses
      high-tailing it out of the state, there are fewer opportunities for able-bodied
      individuals to find work. One in two new graduates are either jobless or
      underemployed. California’s unemployment rate of 10.1 percent is above the 7.9
      percent national average, and well above low tax rate states like North
      Dakota (3.1 percent) and Utah (5.5 percent). Even Arizona boasts a lower
      unemployment rate at 7.1 percent.
      But instead of lowering taxes, Sacramento seems intent on making even
      easier to raise taxes in California. State Sen. Mark Leno will be introducing
      legislation on Monday to _lower the threshold for school parcel taxes_
      (http://blogs.sacbee.com/capitolalertlatest/2012/11/california-senate-budget-head-w
      ants-to-lower-school-tax-hurdle.html) from two-thirds to 55 percent.
      Raising taxes in the name of education–sounds familiar, doesn’t it?
      Governor Brown should take a cue from major retailers and start making
      California a more attractive location for businesses to grow and thrive. He’s
      promised not to raise taxes without constituent consent, but he’s proven a
      willingness to influence voters by holding public services hostage, as he
      did with Prop. 30. It’s obvious that the state’s problem is in expenditures,
      not revenue. But the concept behind raising revenue is just as simple.
      Just like the whopping revenues that Black Friday sales bring in, a lower tax
      rate and fewer regulations will bring more businesses, and in the
      aggregate, more revenue.
      (Josephine Djuhana is Assistant Editor for the California Political
      Review.)


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