Posted on 11/21/2008 9:35:31 AM PST by goldstategop
Seems that Governor Schwarzenegger wants to help out his old Hollywood friends with millions of dollars in tax breaks. He makes a case that lower taxes on film and television companies will reverse the trend of runaway production. Currently, California is losing out to at least 40 other states and Canada that are luring away production companies with very attractive tax incentives.
Five years ago, 66% of feature film production took place in California. Last year this was reduced to just 31% and the governor wants to help an industry that supports about 250,000 employees.
While a non-critical evaluation might make this tax cut seem a good idea -- encourage a major business to remain in our state and retain taxpaying employees -- it is coming from the same governor who is supporting tax increases on all Californians.
The average taxpayer looks at the lesson of runaway Hollywood production and draws an entirely different conclusion. They see just one more example, out of many, of high California taxes driving business, jobs and taxpayers out of state. The U.S. Census Bureau reports that the state is suffering a massive net out-migration of citizens to other states. In most cases, those leaving also represent a loss of jobs and taxpayers who are vital to supporting state and local services.
The governor would be wise to reexamine a tax policy that creates some winners -- like his Hollywood friends -- and many losers, i.e., ordinary California taxpayers. If we can afford to give entertainment companies a tax break, how about a break for all businesses and taxpayers? If a tax break for production companies will keep them here, why not apply the same principle to all and not only encourage native businesses and taxpayers to remain in the state, but encourage new business and taxpaying citizens to relocate here?
Californians like to think of themselves as leading the way for the rest of the nation. When it comes to taxes, we do. Our state has the highest income and sales taxes in the nation. We have the highest business taxes west of the Mississippi. When it comes to providing a healthy climate for business, several studies show we are leading the way to the bottom.
A few months ago, I had the privilege of speaking to a group of Utah legislators. When the subject of the California Legislature came up, they began to chuckle. They explained that they credited California lawmakers, with their anti-business policies, as a significant asset in getting businesses to relocate to their state.
It is time for the Legislature and the governor to take off their blinders and recognize that California is rapidly losing the competition with other states. Higher taxes that Sacramento politicians are pushing would make us even less competitive. If they want to grow the economy, put people back to work and ultimately increase revenues to government they need to move in the opposite direction.
A tax cut would go a long way toward polishing the image of the now tarnished Golden State. The Hollywood example has already shown businesses will respond to an attractive tax climate. Why not go on the offensive and be among the first states to make businesses an offer they can't refuse? A tax cut for all would be the quickest way to lift us from the grip of recession.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
A tax break for an industry that believes that paying an uneducated twit $17 million for three months’ work playing dressup is okay and then charging us $12 a head to watch it? Bull pucky!
Taxes and a culture that I no longer recognize are parts of it.
(Second Amendment worries are the other part.)
There are many great states from which to choose in this wonderful Country; and I fewer and fewer reasons to remain here.
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My wife and I left California five years ago today. I chucked a dollar out the window as we crossed the border at 70mph in our rented RV towing our car. It was the last dollar the state was going to get out of me.
Three thousand miles later, we settled in New Hampshire with 0% income tax and 0% sales tax, adopted a little boy from Russia who plays in our yard which is measured in acres instead of square feet, and we couldn’t be happier.
http://www.freestateproject.org/
Most that do this find out their still spending the same money just to keep warm in long frigid winters, and cool in boiling humid summers. lol
For me personally, having year round Mediterranean like weather is worth a small fortune to me.
If you hold California sorry, Kalifornia, in such low regard why do you spend time on a web site based in Fresno?
While I agree with your well-intentioned premise, it is time to accept reality. Collapse is the only thing that is going to wake up that state and this country. These bones being thrown out there are only prolonging the inevitable which is in free fall right now. The people have missed the underlying issue which is people putting their trust in money and government and not in God.
look at what they did to WA and Oregon. Now they are invading and bringing their values to Colorado, New Mexixo and Nevada.
(Maybe I should move there! Nyuk, nyuk, nyuk.)
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And the rest of small companies can go to hell. He’ll cut their taxes and raise everyone elses.
We’re seeing the same thing in New York. We’re looking to make a move in the next few years, but our destination will have to fulfil several criteria.
There must be no state income tax.
There must be no major cities.
It must have little or no migration from the northeast.
This last factor is critical. New Yorkers, and others from the region move out to escape the oppressive burden of taxation. Then they get to their new home and pull the lever on election day for the same liberal losers who have made life unlivable in their former hometowns.
We were at a recent going-away party for friends who were moving to North Carolina because they could no longer afford New York. When I told Ben that we were looking to relocate and were considering North Carolina he raised his glass and said: “Good. We’ll turn that red state blue in no time.”
I walked away shaking my head while making a mental note to cross North Carolina off of our prospective destination list.
You had better hold your breath on those New Hampshire taxes. Yourt state has beeen slowly infected by people from the Peoples Republic of Massachusetts who turned it from a solid Red State to a Blue State.
Couldn’t happen to a better state.
California should be broken up into two states.
Well I have to respect your honesty but unfortunately the price you will pay for the trade off of warm seasons is vastly higher than dollars. I personally am glad to see people stay there because it is fewer bringing those socialistic principals to my back yard in Alaska. Californians have completely forgotten what freedom really is, but that’s fine. You have my blessings to stay there. I’m happy to see it.
I finally left last month because I wanted to start a new company - no way was I going to do it there.
The Second Amendment was one of the key reasons we left California as well, five years ago. I’m now serving on the Board of Directors of Gun Owners of New Hampshire, and out here, concealed carry licenses are $10 for 4-5 years, and open carry is legal.
A bill to ban guns in the NH State House was overwhelmingly defeated this year, and the Rep. who proposed it lost her Democrat-party primary 80%-20%.
This is no longer the place I grew up.
Some years ago I lived and worked in Guadalajara for three months. I read the papers, drove around the country on weekends, talked to folks and got to know the Mexican state of Jalisco pretty well. The rest of the West may be becoming “Californicated” but based on my observations, with the direction our state government is heading California is becoming “Jalicaficado” faster.
It’s about time to leave.
“...fewer and fewer reasons to remain here.
Whether to leave can be a tough decision but take the word of any who have already left, sooner is better. The sad part is, while almost every state has magnificent natural features, CA has some of the most scenic areas in the country.
Trust me on this one - as a native I have been there, done that - they will be turning the heat up.
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