Dan Walters: Just the facts on Californians' tax burden

Sacramento Bee ^ | 1/21/11 | Dan Walters

[SmithL]

Are Californians overtaxed, undertaxed or, to crib from the fable about Goldilocks and the three bears, taxed just right?

We're already being inundated with claims and counterclaims about tax burdens as Gov. Jerry Brown and the Legislature weigh whether to place about $9 billion a year in tax extensions on a June ballot to cover budget deficits.

Sorting through the tax rhetoric is not easy. Reliable, up-to-date numbers are hard to find, and there's no universal agreement on how data should be interpreted. But here's a shot.

The most comprehensive data on state and local tax burdens – you have to combine the two to make meaningful comparisons – are maintained by the Washington-based Tax Foundation. And it uses the most commonly accepted measure: taxation as a percentage of personal income, which takes into account the wide state-to-state income variations.

The Tax Foundation calculated Californians' state-local taxes in 2008 at 10.5 percent of personal income. That translated into about $170 billion in revenue and the nation's sixth-highest percentage. New Jersey was highest at 11.8 percent, followed by New York, Connecticut, Maryland and Hawaii.

That was in 2008. In 2009, however, then-Gov. Arnold Schwarzenegger and the Legislature enacted about $9 billion a year in temporary income, sales and car taxes.

They wanted the taxes to remain for several years, but voters short-circuited them in May 2009 by rejecting a package of budget-related ballot measures.

That's why those taxes are now expiring and why Brown is seeking a five-year extension. And as long as they are in effect, they add roughly a half-percent to Californians' tax load, pushing it to about 11 percent of personal income.

[Tigerized]

You don’t need a politician or an economist to see what’s happening in California. Commercial vacancies are everywhere, businesses are fleeing, homes are in foreclosure, the middle class is disappearing.

But does the state government take notice?

No, they just keep trying to implement new schemes to squeeze even more from the working class.

Bulletin to Sacramento: The Golden Goose died long ago, and is no longer producing golden eggs. Squeezing it harder won’t do the trick anymore.

And this native Californian, who has been steadily paying taxes since age 14 is seriously considering Texas.

[Freedom_Is_Not_Free]

I’ve only been paying taxes since I was 18 but I can attest to the high tax rates as well and can’t wait to retire and flee this state for one with lower taxes and MORE freedom. Much more. I did start working at 13 because back in 1973 I was too young and stupid to know I was doing the work Americans just won’t do by mowing the lawns and weeding the yards of the elderly neighborhood ladies who hadn’t found illegal alien labor yet in those days. Pioneering what the illegals would later perfect, I did work under the table for cash and paid no taxes - sorry California, but then again the ladies saved on paying my SS taxes.

Oh those heady days when we were too stupid to know we were doing the work American’s won’t do.

Walters hits some highlights but ignores the stealth taxes. The tax rate on businesses is one thing, but what about all the the burdensome regulations. He mentions high house costs but doesn’t state the regulations that add tens of thousands to the cost of building a new home in California. Green regulations & etc driving businesses out of the State. All stealth taxes.

I can’t wait to leave this commmunist hellhole — sunshine, beaches, lollipops and all.

[4Liberty]

‘Budget cuts’ to the State mean Budget RESTORATION to ordinary people, taxpayers.

They get their own money back - to invest, start a business, plan for retirement, give to their kids for higher education expenses.

That’s what the RATS don’t “Get.”

Dumb, greedy Rats...