Wednesday, May 31, 2017

California's TAXING PROBLEM.

There are many things that anyone living in California has to "fear" . Foremost is the high cost of living in the Golden State .  The states politicians could exasperate an already overburden system to the point of collapse. (1)>>People don't like taxes and it's obvious . BUT GOV.  Brown has already called the complainers FREELOADERS .  The freeloaders — I’ve had enough of them … They have a president that doesn’t tell the truth and they’re following suit,” he said. Brown was speaking in Orange County, defending State Assembly newcomer Josh Newman (D-Fullerton), who is facing a recall effort after voting for Brown’s new transportation taxes in April. The new tax raises existing gas taxes — already among the highest in the nation — by 12 cents per gallon, with higher taxes on diesel, and slaps car owners with higher annual registration fees. Critics have pointed out that the burden of the tax falls most heavily on middle-class Californians.  A new poll found that 54 percent of Golden State voters think they pay too much income tax. The latest Field Poll also shows that 40 percent of Californians actually believe they’re taxed just enough. Only 2 percent said taxes are too low.Party affiliations and income levels played a significant part in beliefs about taxes. Four out of five Republicans think taxes are too high, while 52 percent of Democrats are OK with the current tax rates. People in the lowest income bracket in the survey, earning less than $40,000 a year, were least likely to gripe about paying their government dues. There is also without (2)>>question a mass exodus of people out of California. During the 12 months ending June 30, the number of people leaving California for another state exceeded by 61,100 the number who moved here from elsewhere in the U.S., according to state Finance Department statistics. The so-called “net outward migration” was the largest since 2011, when 63,300 more people fled California than entered. 
Californians to blame .
Yet voters just passed higher California taxes, at least until 2030. California'sProposition 55 extended the “temporary” 13.3% tax rate on California’s high-income earners, the highest marginal tax rate in the nation. Well, it's only temporary, through 2030. These personal income tax increases on incomes over $250,000 started in 2012. It hits 1.5% of Californians, those with a single income filing of at least $263,000, or a joint income filing of at least $526,000.Many of these people must be thinking about cuts in federal taxes they might get in 2017. Yet the disproportionately high California tax rates are an increasingly large share of their tax burden. That is causing some to weigh the benefits and burdens of the Golden State. Tax-free Nevada is just across the border. Texas, Washington, and Florida also have beckon. (3)>>It seems that MOST CALIFORNIANS are gullible . Over the years we were hit with various propositions on the ballot that "claimed" to be funding education , but in reality like the vice taxes on cigarettes , alcohol  & the Lottery.  What percentage of that money went to local schools is a mystery ? Some of these tax laws linked to the education system of the state seem to be paying for other things . Of course Gov. Jerry Brown's hike on gas taxes for example is illegal since voters never approved them .Since 2003 we have had various bond measures , tax increases to pay for roads  . So where is the money going ?
2018 California's attempt for  Health Care for all.
Bigger Taxes are coming . California has a plan for the single -payer system healthcare . For it (4)>>SOUNDS LIKE A DREAM COME TRUE . However we need to look at what the states lawmakers are doing , compare it to other single payer systems in other countries . As far as socialized medicine in Canada , UK or EU .Other nations approach their single-payer systems in a variety of different ways.Canada’s system is different from Germany’s, which is different from Britain’s. Each country ensures that all residents have access to high-quality and affordable healthcare. But they take different roads to get there. The California way has some fiscal problems. The Sacramento Bee notes that, even after accounting for an estimated $200 billion that could be saved by replacing current state-run health programs with the single-payer program, the state would still need to come up with $200 billion annually.A single-payer system generally works like this: Instead of buying health insurance and paying for premiums, residents pay higher taxes. And those taxes are then used to fund the insurance plan — in the same way Medicare taxes are used to provide insurance for Americans 65 and over. California's proposal is particularly expensive because it's not just a single-payer proposal, but a generous one. As Vox details, "the state would pay for almost all of its residents' medical expenses—inpatient, outpatient, emergency services, dental, vision, mental health, and nursing home care—and Californians would not have any premiums, copays, or deductibles." Undocumented immigrants would be covered too.

Last Word :
California has among the highest taxes in the nation. Its base sales tax rate of 7.5% is higher than that of any other state, and its top marginal income tax rate of13.3% is the highest state income tax rate in the country.California state taxes are among the worst in the country, according to the Tax Foundation, a non-partisan, non-profit research group in Washington D.C. The state has the highest state-level sales tax rate in the nation at 7.5 percent, although this is slated to drop to 7.3 percent at the end of 2016. Combined with local sales taxes, the rate can reach as high as 10 percent in some California cities. So think about it . Don't assume you tax money is going to where its supposed to be going .







(1)>>People don't like taxes and it's obvious .  California sends more taxes to the Feds than the Feds send to us.  The poorer states take more taxes from the Feds than they send.  The richer states, of which California is one, support the poorer states. The Total state and local tax burden in California pulls in 11.4% of state income.  The national average is $9.8.  So if we apply those percentages to an income of $100K, then in CA you're paying $11,400, while on average you're paying $9,800.  That's a $1,600 difference.. which is substantial altogether.  But!  Split into daily increments... that's barely enough to buy you a lattè a day.  Plus, your income in California will be higher, outpacing most places more than the $1,600 difference, so you're not out money. They tax EVERYTHING that they can possibly find a way to tax and we STILL need to pay (and are taxed again) for our bus and train rides, recycling pickup, documentation fees any time you do something at a gov building. Point is, we get taxed so that services can exist, then we get to pay again in order to use them.  (2)>>question a mass exodus of people.  The Mercury News reported : "A dive into Internal Revenue Service data shows distinctly that, while poor people are, indeed, leaving, the largest group of outmigrants tends to be middle-aged people making between $100,000 and $200,000 annually. They may not be ideal algorithm creators for Facebook, but they do constitute the solid middle ranks critical to any healthy economy.Indeed, since 2010, the Golden State has seen an overall net outflow of $36 billion from these migrants (and that counts only the first year of income). The biggest gainers from this exchange are where Californians are moving, to such places as Texas, Arizona and Nevada. That some California employers are joining them in the same places should be something of a two-minute warning for state officials.But California leaders have other things on their minds that do not include accommodating the aspirations of residents who refuse to abandon suburban homes, or who are unwilling to desert their cars for the pleasures of mass transit. Until Californians demand a government that reflects their aspirations, too many people will continue to have to seek their futures elsewhere, to the detriment to those who remain behind."  (3)>>It seems that MOST CALIFORNIANS are gullible . For the last two decades most voters raised taxes. I remember Gov . Jerry Brown in 2012 fooled Californians , Gov. Jerry
Brown, seeking to promote his Proposition 30 tax initiative, is telling voters that while "the California dream is still vibrant," the tax increase is needed to keep it that way. We had tax increases for education . This tax was supposed to be temporary . Always bait and switch. The Prop 30 tax did not go away . Advocates of higher tax rates can get very specific when they want to. A recent article in the New York Times says that raising the tax rate on the top one percent of income earners to 40 percent would generate “about $157 billion” a year in additional tax revenue for the government. This ignores mountains of evidence, going back for generations, showing that raising tax rates does not automatically mean raising tax revenues — and has often actually led to falling tax revenues. A fantasy expressed in numbers is still a fantasy. Proposition 13, the original groundbreaking statewide initiative that limited the power of local government to increase property taxes; Proposition 62, which gave voters powers to approve or reject certain tax increases proposed by state and local government; Proposition 218, which expanded these powers and Proposition 26 (2010), which shut down the practice of mislabeling “taxes” as “fees.” The court confirmed that these constitutional amendments were all designed to protect taxpayers by limiting the power of local government to impose taxes, but were not limits on the power of the people to impose taxes via the initiative process. (4)>>SOUNDS LIKE A DREAM COME TRUE . Health care is too expensive for each of us individually but if we pool our money we'll have enough for all of us collectively.   The "single payer healthcare " is a dream . BUT I would not go increasing taxes with out addressing the cost of our healthcare system first . I would take any healthcare system that lowers out of cost payments , with specialty with families with more than one child child . 

Contra Costa Examiner also explains another "problem":

And this while the state and local governments in CA are currently struggling just managing subsidized care, let alone actual state-run hospitals.
There was a county-run hospital in Contra Costa County (Doctor's Medical Center in San Pablo) that recently shut down because it was hemorrhaging money at such an alarming rate and the County simply found it expeditious to kick some money to privately run critical care facilities to make up the gap.
Likewise, in Alameda County, the county hospital also ran itself into the ground and is now essentially being leased to a subsidized private provider who also can't seem to stop running at an enormous loss.
While the actual boots-on-the-ground facilities are exploring various methods of privatization in order to achieve basic functionality, the legislature is actively working to put all medical facilities in the state back into the hands of the very system that is frantically trying to divest itself of those facilities due to its inability to run them.

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