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Businesses will continue to leave if taxes increase

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Posted: Tuesday, April 10, 2012 12:00 am | Updated: 6:13 am, Tue Apr 10, 2012.

At the Lodi Unified School District board meeting on March 27, Jeff Johnston, president of the Lodi Education Association, asked the school board members to join him in a resolution to support the new tax on "millionaires and billionaires" (otherwise known as employers) being proposed by our governor.

I wonder if Mr. Johnston realizes that we have lost 507 businesses between 2009 and 2011. That is roughly five businesses in any given week.

According to Jon Coupal, Howard Jarvis Taxpayers Association, and John Kabateck, National Federation of Independent Businesses, California's tax climate is the second-worst in the nation. Income taxes are the third-highest in the nation. The 9.3 percent rate kicks in at $46,349 in annual income, and 10.3 percent to incomes over $1 million. Highest sales tax at 7.25 percent, plus local levies in some areas. Fourth-highest capital gains at 9.3 percent. Second-highest gas tax at 65 cents a gallon. There is also the vicious regulatory environment that business has to negotiate.

In February 2012, income tax receipts were down $328 million, or 16.5 percent. Sales taxes were adjusted to reflect an end to the temporary one-cent sales tax hike. Sales taxes in February are $400 million, a decline of 12.4 percent. Tax revenues continue to fall because businesses and successful people (millionaires and billionaires) are leaving California for better tax rates available in more pro-business states.

If we vote for this tax increase, the businesses will continue to leave along with jobs. Less money not more. These are not stupid people. They won't continue to be robbed.

Linda Gooden

Lodi

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18 comments:

  • Darrell Baumbach posted at 3:13 pm on Fri, Apr 13, 2012.

    Darrell Baumbach Posts: 9405

    Mr Barrow stated...Darrell either didn't read my post or is in denial. Thats ninth in number of millionaires, first in number of billionaires and twelfth in medium income

    Actually, I read your post carefully twice just to make certain I understood what you said. I then thought about what you said for 2 minutes or so just so I could respond thoughtfully.
    Your statistic about rich people in California is utterly meaningless. Many people are millionaires on paper that are counted in that statistic.

    What matters is that California's tax revenue has decreased yet we have one of the nations highest "TAX RATES".

    How is that possible? ...if we go by what you think is important.

    If we have the highest tax rates, and a ship load of billionaires and millionaires, why are tax revenues going down so dramatically. According to you, we should have all the money we need. Obviously, if businesses and jobs are leaving, tax revenue goes down.

    Maybe math is not Eric's strong suit. He certainly is unaware of the hostile business environment that contributes to the jobs leaving. The high tax rates... just but one of many reasons.

     
  • Eric Barrow posted at 3:42 pm on Thu, Apr 12, 2012.

    Eric Barrow Posts: 1511

    The gloom and doom club would love for the California's economy to be collapsing then thay can point to the democrats running the state and claim there policies don't work same thing is happening on the national level. We are coming out of the recession and many economic indicatores are looking good but of course the radical right can never admit this, that would mean Obama's policies are helping.

     
  • Eric Barrow posted at 2:12 pm on Thu, Apr 12, 2012.

    Eric Barrow Posts: 1511

    Darrell either didn't read my post or is in denial. Thats ninth in number of millionaires, first in number of billionaires and twelth in medium income

    The Golden State accounted for 13.1% of all the goods and services produced in the country last year, down from 13.2% in 2009 and 13.4% in 2007 and 2008.
    Texas was a distant second with 8.3% of the U.S. GDP in 2010, up from 8.2% in 2009.
    http://economy.ocregister.com/2011/06/08/california-still-leads-u-s-in-state-gdp/57715/

    California ranks poorly on many indexes, particularly those focusing on taxes and costs. At the same time, the state’s employment, wages, and output continue to grow at or above the national average, raising the question of why California’s economic performance is better than its business climate rankings suggest it should be…..
    We find that business climate indexes that focus on productivity exhibit essentially no relationship to California’s poor ranking among the business climate indexes focusing on taxes and costs is offset by natural advantages (in particular, good weather), and these favorable factors enable California’s economy to perform reasonably well. In sum, many concerns about the business climate in California are probably overstated
    http://www.ppic.org/content/pubs/report/R_411JKR.pdf

     
  • Darrell Baumbach posted at 12:56 am on Thu, Apr 12, 2012.

    Darrell Baumbach Posts: 9405

    So when Eric says..." Ya we're barely getting by"... the reality... its not as good as Eric thinks.

    Its much worse than that, so no, we are not just getting by, that is an illusion. The ship is sinking with Moon Beam Brown leading the way... the ship is sinking and Eric thinks its time to party and surf... no, we're not getting by at all.

    When companies leave, jobs leave... when jobs leave , people leave... tax revenue is way down and getting worse. The democrats are kicking the can down the road hoping for a miracle, that is about all that's left to turn the ship around... a miracle


     
  • Darrell Baumbach posted at 12:46 am on Thu, Apr 12, 2012.

    Darrell Baumbach Posts: 9405

    More reality of Eric....

    California has lost nearly 1 million jobs during the last decade, Texas has gained 1 million... hummmmmmm... Why is that?

    One reason is that their taxes are much lower than California and there business atmosphere is more friendly... In other words, Texas has less people who have Eric's sense of reality.


    California income tax rate is at 10.3 percent
    Texas income tax rate is at 0%... zero....

    On the ballot this year, Gov. Jerry Brown wants California voters to approve higher income taxes and higher sales taxes even as current high rates (including a millionaire tax rate) Moon Beam Brown insists on driving jobs and businesses out of the state and reducing, not increasing, state revenues.

     
  • Darrell Baumbach posted at 12:31 am on Thu, Apr 12, 2012.

    Darrell Baumbach Posts: 9405

    More reality for Eric from Sacramento Business Journal
    Businesses and jobs are leaving California in droves...

    California loses 572,400 manufacturing jobs in decade

    Sacramento Business Journal by G. Scott Thomas
    Date: Thursday, May 26, 2011, 12:46pm PDT - Last Modified: Thursday, May 26, 2011, 1:29pm PDT

    The decline in manufacturing activity is nearly universal across America. Forty-nine of the 50 states have lost manufacturing jobs during the past decade, and California was hit the hardest, according to an On Numbers analysis of new data by the U.S Bureau of Statistics.

     
  • Darrell Baumbach posted at 12:28 am on Thu, Apr 12, 2012.

    Darrell Baumbach Posts: 9405

    Eric Barrow stated...How is it that some people perceptions are so far from reality? ( In reference to wealth leaving our state)...
    Eric is amazing... he wants to quibble about how many millionaires CALIFORNIA HAS WHILE THE ECONOMIC SHIP IS SINKING and wealth is leaving... I think I can answer Eric's question... Moon Beam Jerry Brown is our governor. The people who elected him to lead the way are the same people Eric believes has the answers. How far out of reality could one get... beam me up Scotty....

    By Seana Smith

    “California is losing businesses at a 3:1 ratio and we’re not even through with the year yet,” said Vranich. “It’s high-tech, it’s low-tech, it’s all-tech. We have a small company in California, in Los Angeles, leaving with 25 people but it’s Intel that creates 1,000 jobs elsewhere that makes the headlines

    Intel announced that it will be investing billions to upgrade factories in Arizona, in addition to building a new factory in Oregon. The plan is projected to create between 6,000 and 8,000 construction jobs and 800 to 1,000 high-tech factory jobs, a huge loss for California. “The Intel investment in Oregon, when you add it to Arizona, is $8 billion, with a “B,” so the exodus of capital from California is running at an alarming rate

     
  • Eric Barrow posted at 1:53 pm on Wed, Apr 11, 2012.

    Eric Barrow Posts: 1511

    Ya we're barely getting by...

    California may be in the midst if a serious financial crisis, but it still has a tons of millionaires… 662,735 to be exact. That's by far the most in the country by number, but there are a ton of people in California, so it's only in 9th place relative to the total population.
    http://finance.yahoo.com/news/pf_article_109083.html
    California also has 25% of all the billionaires in this country and even though it has the most people of any state (36.5 million) it ranks 12th in median income at $43,104
    How is it that some people perceptions are so far from reality?

     
  • Patrick W Maple posted at 11:26 am on Wed, Apr 11, 2012.

    Pat Maple Posts: 1805

    Wow! Well posted and documented. Well said to you all. I would only add my theory (thought, idea...etc). The Dems WANT the businesses to leave because most are ran and owned by Reps....less competition in the voting booth. Hmmmmm

    Where is msb, kl and jl when you need them?

     
  • Kim Parigoris posted at 9:24 am on Wed, Apr 11, 2012.

    Kim Parigoris Posts: 470

    Californias job killers AB 32 and SB375 are based on United Nations climate change data..Here is an excerpt from Investors Daily magazine.
    "Climate change alarmists either ignore the existence of the Medieval Warm Period or say that it was regional rather than global. A new report, however, shows that the warming was worldwide.
    The Medieval Warm Period is a profound problem for those who claim that man's 20th- and 21st-century carbon dioxide emissions are warming the earth.
    If an era as warm or warmer than today did indeed exist 500 to 1,000 years ago, before man had invented the CO2-emitting internal combustion engine, then it weakens their claim that any warming occurring now is due to human activity. The reality of such a period is a strong sign that climate change is both natural and cyclical, not moved by man's modern habits.
    In fact, confirmation of the Medieval Warm Period not only dilutes the alarmists' argument, it virtually kills it.
    So rather than deal with it, they act as if it never happened. They want to try to make it, as one message among the Climate-gate emails suggested, "go away."
    Or they insist that it was confined to Europe and maybe North America, and therefore is of little relevance. This is the position of the United Nations' Intergovernmental Panel on Climate Change, which is supported by America's Environmental Protection Agency that says the "geographical extent, magnitude and timing of the warmth during this period is uncertain."
    It's also the position of Al Gore, the former vice president who set off most of the global warming hysteria.
    He has maligned the Medieval Warm Period as a "tiny" blip on the temperature chart of history that he imagines proves the nonsense that he's been disgorging for years."

     
  • Kim Parigoris posted at 9:18 am on Wed, Apr 11, 2012.

    Kim Parigoris Posts: 470

    Yes, Brian- it is a shame. We were transplants here from back East in the late 70's and I never thought I would want to leave. But even the beauty is waning.. a recent visitor here from the Midwest asked if California even had litter laws. So many of us are trapped here because we won't walk away from our homes. It is a true shame..and a lot of the damage is being done by ill informed, well intentioned people being used as pawns in a political game to promote personal agendas. Global warming theories are being debunked every day but the liberal media will not share that knowledge and every "Green" snake oil salesman sells its wares to our local and state officials and they pass extremely detrimental bills like AB 32 and its evil twin brother SB 375.

     
  • Brian Dockter posted at 8:00 am on Wed, Apr 11, 2012.

    Brian Dockter Posts: 2830

    In my travels I rarely hear people who left CA saying they want to go back. And on the occasion I do hear someone saying they want to go back it's only because they miss the beauty of the state.

     
  • Patrick W Maple posted at 2:17 pm on Tue, Apr 10, 2012.

    Pat Maple Posts: 1805

    K J and D....well put. Try getting a permit...the "additional fees" will astound you.

     
  • Kim Parigoris posted at 8:49 am on Tue, Apr 10, 2012.

    Kim Parigoris Posts: 470

    Think the SEIU isn't on a mission? http://civic.moveon.org/event/events/index.html?action_id=268&rc=99SEIU
    This is being supported by Moveon.org and promoted by SEIU. We have SEIU, Progressive Democrats of America, the list is quite long and they are very well funded. Think Communism isn't alive and well in the US? "Workers of the World Unite!" was their mantra back then in the 40's , and is their mantra now.

     
  • Kim Parigoris posted at 8:34 am on Tue, Apr 10, 2012.

    Kim Parigoris Posts: 470

    When all the miilionaires and billionaires leave the state, as Ms Gooden says, guess what happens next? The tax increases have to fall on someones shoulder's and next hit will be the tax bracket below and they will keep on moving down the ladder. I guess at some point it will hit you and me- and hard. California does not have a revenue problem- it has a spending problem, but with more and more businesses leaving, they WILL have a revenue problem, because that is where the revenue comes from. Oil companies pay 46% to 64% in taxes. Let's tax them to death until they move to China- that will teach them!

     
  • Kim Parigoris posted at 8:30 am on Tue, Apr 10, 2012.

    Kim Parigoris Posts: 470

    Why Josh that would be using common sense - I have worked for both union and non union companies (private) and I have seen first hand the detrimental attitudes of the average union worker. I have seen good, honest young people come in and work hard and try to do a good job. After the old timers pull them to the side and have a little "chat" with them about "showing them up" and "What's your hurry?" attitude, these people join the ranks of the parasites that feel that management are all bloodsucking parasites that are just out to exploit them. . I believe that like the ACLU they served a purpose at one time but we have enough government regulations that they are no longer needed. The worst part is that this tax increase inititaive will be supported with OUR tax dollars. Our Tax dollars pay the public employees union employees, their dues are extracted from that pay, and that money is used to run ads scaring the heck out of citizens that teachers, police and firemen will all be on the chopping block if our income taxes aren't raised. I can see the commercials now..three little children (one black, one hispanic and one Oriental) sitting on a curb in front of a school that has a padlock on it and a sign that says "Closed due to budget cuts."

     
  • Josh Morgan posted at 6:32 am on Tue, Apr 10, 2012.

    Josh Morgan Posts: 532

    I would suggest that the teachers association and another other organization supported by taxes encourage a resolution that asks the State to lower taxes on businesses (millionaires and billionaires) and do anything else that would ATTRACT business to our State and not run them off to other states and countries. The employment, sales, property and income taxes this would produce is what will generate income. An increase will continue the unfriendly business atmosphere and fleeing of business from our State.

     
  • Darrell Baumbach posted at 2:57 am on Tue, Apr 10, 2012.

    Darrell Baumbach Posts: 9405

    You would think the State with the highest income tax rate, highest gas tax rate, highest insurance premium tax rate (2%), one of the best international tourist destinations bringing in high sales taxes, collects internet taxes that some states do not, and a high population density where more people pay more taxes in our state, large income in revenue sharing in the Indian casinos, lottery share, and what ever taxes I missed that California would be swimming in money.

    Liberals always say that higher tax rates mean more income to the government. This letter makes very clear that that kind of thinking is not necessarily true.

     

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