California in the hole $21.3 Billion.

Joined
26 July 2007
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California / Monterey County
California is probably one of the worst states hit hard by the economy. Highest foreclosures, highest cost of living, highest sales tax, and lowest in education. There is no way to dig out of a $21.3 billion dollar deficit anytime soon. The fed's are not going to keep bailing out Cali.

Since, Arnold can't seem to get a budget passed, he'll probably slash more state and city jobs. Will need to freeze wages and enforce more pay cuts. Release inmates from prison/jail due to over population and cut backs on C.O.'s staff.
 
Imagine that....the most liberal state in the U.S. is also the worst off fiscally.

Who would have thought? :confused:

And no, he may call himself a republican, but Arnold is anything but.
 
Imagine that....the most liberal state in the U.S. is also the worst off fiscally.

Who would have thought? :confused:

And no, he may call himself a republican, but Arnold is anything but.


Exactly! :tongue: Well stated, and also observed in select other states. Ummmm, NSX GT why don't you come east here to Michigan and check out another Democrat run state in action I mean self-destruction. 12.9 percent unemployment rate.
Oh, and Oblama will keep bailing out California with our money.
 
California is probably one of the worst states hit hard by the economy. Highest foreclosures, highest cost of living, highest sales tax, and lowest in education. There is no way to dig out of a $21.3 billion dollar deficit anytime soon. The fed's are not going to keep bailing out Cali.

Since, Arnold can't seem to get a budget passed, he'll probably slash more state and city jobs. Will need to freeze wages and enforce more pay cuts. Release inmates from prison/jail due to over population and cut backs on C.O.'s staff.

Worst sales tax!? Are you f'n kidding me? Yours is like 6.x%, our is nearly 10%! Granted, we don't have income tax.. so that need to be taken into effect.

But yeah - the more liberal, the more "tax the rich and give away free stuff," the worse off that place will be in the long run.

Here's a very relevant quote:

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage" -Author(s) unclear
 
Total disaster.

My prediction: At some point, the Fed Gov't will bail out the state (it basically has to, plus think of all those Dem electoral votes...:rolleyes:), BUT it will do so on the condition that muni bond holders -mostly wealthy Cali residents- take a big haircut on their debt. This solution magically reduces the current debt burden and it does so *entirely* at the expense of the wealthy. It's a homerun if you want wealth redistribution.

Imagine -- in 2006 you're a 50 year old Cali resident with a $35M net worth. $5M was your home, $10M was in stocks, $5M was in private equity, and $15M was in CA muni bonds. This would be a very typical and fairly conservative portfolio. And, not included, you own a typical business that generates $1M/year in income (so at 6x multiple, is worth $6M)

Now, your home is worth $3M and falling, your stocks are worth $7M, your private equity portfolio is worth $0.10, and you take a 60% haircut on your "safe" bonds (quite possible). Now, your net worth is $16.5M. Your business? It's breakeven now and multiples have dropped to 3x anyway.

That's wealth destruction, and that's why the upper end of the housing market has a long way to fall still...
 
I remember back in 82 when my sister moved there to be a bum. She moved there because she learned CA had the absolute best state programs to leach off. She got on welfare for years and milked the CA system. She used to brag she knew exactly where to go to each weekend to get free food stamp handouts.

People should really look at CA as a prime example of what may happen to this entire country.
 
Worst sales tax!? Are you f'n kidding me? Yours is like 6.x%, our is nearly 10%! Granted, we don't have income tax.. so that need to be taken into effect.

But yeah - the more liberal, the more "tax the rich and give away free stuff," the worse off that place will be in the long run.

Here's a very relevant quote:

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage" -Author(s) unclear

California has one of the highest STATE INCOME TAX in the union, if not the highest at 9.55% for income over $47xx (considering the fact that I clear 5 grand per month and still having problem paying all the bills - As a single guy, a family making less than $47xx is in poverty), and Washington is a state income tax free zone. The sales tax in California is OVER 10% in some some area. Most area are at 9.25%.

California also has the second highest tobacco tax in the union, at 47% (the highest tobacco tax state is so small that no one cares). A $10 dollar cigar in Taxes will cost you $15 in California.

California also has very high energy tax through gasoline.

Within the last four years, the high business tax drove away massive small business, many of them relocated to AZ, OR, and NV; more middle class income families left the state, with more illegal immigrants moving in. The states currently a welfare state. "Let's promise to take care of those lazy idiots so they can continue to vote for us."

Yep, California is the breeding ground of ultra liberalism that is a perfect example of what the Democrats want for this nation, even though the whole state is collapsing, but somehow these politicians are blind folded. Keep up the good work! Our congress may consider sell California back to Mexico to pay our children debts.

Great nations rise and fall, but can also rise up again. It is up to the people to elect great leaders, not some one with empty promises.

An amazing time we lived in!!!

Just to put this in perspective - people who can afford to live in this state classified under "middle class" family will have to pay:

40% Federal income tax
9.55% State Income tax
9.25-10.25% in sales tax
47% tobacco tax (if you use tobacco) and a 10% Federal S-CHIP tobacco tax.
$.20 per gallon alcohol tax (if you drink)
$Gasolin tax


GOD DAMN!!!
 
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California has one of the highest STATE INCOME TAX in the union, and Washington does NOT. The sales tax in california is OVER 10% in some some area. Most area are at 9.25%.

California also has the second highest tobacco tax in the union, at 47%. A $10 dollar cigar in Taxes will cost you $15 in California.

California also has very high energy tax through gasoline.

Within the last four years, the high business tax drove away massive of small business, more middle class income families left the state, with more illegal immigrants moving in. The states is becoming a welfare state. "Let's promise ot take care of those lazy idiots so they can continue to vote for us."

Yep, California is the breeding ground of all the ultra liberals that is a perfect example of extreme liberalism. Keep up the good work! Our congress may consider sell California back to Mexico to pay our children's debts.

Great nations rise and fall, but can also rise up again. It is up to the people to elect great leaders, not some one with empty promises.

An amazing time we lived in!!!

DITTO. I was misguided about sales tax then.. but our gas is higher hear than in California, so my brother tells me who moved up...
 
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I remember back in 82 when my sister moved there to be a bum. She moved there because she learned CA had the absolute best state programs to leach off. She got on welfare for years and milked the CA system. She used to brag she knew exactly where to go to each weekend to get free food stamp handouts.

People should really look at CA as a prime example of what may happen to this entire country.

Very sad that California is so far away from NY. NY hands out money freely to anyone who puts their hand out. Often times these freeloaders get sick of the winters and move to Florida for some sunshine but they return rather quickly after Florida doesn't give them a handout. If Cali were a little closer maybe they would leave here and not come back. :(
 
I remember back in 82 when my sister moved there to be a bum. She moved there because she learned CA had the absolute best state programs to leach off. She got on welfare for years and milked the CA system. She used to brag she knew exactly where to go to each weekend to get free food stamp handouts.

People should really look at CA as a prime example of what may happen to this entire country.

Sadly, for a number of my early years, my mother did the same.. which is why we moved from Texas to Washington state. Luckily, over time, the federal government and the state started taking the crack/foodstamp/welfare check pipe away, and they eventually rehabilitated themselves into a middle-class hard-workign society, but it took over a decade and probably hundreds of thousands of your tax dollars :(

But with THAT ONE(tm) it's "all coming back to me now!"
 
CA has an incredible number of illegal migrants that come over, work very hard for little money and pay very little taxes.

While they [the undocumented migrants] may work very hard, their mere presence draws down resources very quickly and is not sustainable. Their pay scales do not pay enough for them to pay the taxes required, cheap labor has a very very high cost.

The CA tax system was to have a large percentage of very high earners of individuals and corporations (aerospace, entertainment, finance, etc...) in comparison to the poor folks.

This system has been turned on its head.

The Feds do very little on sending these folks back, at least in comparison to the problem. The State gets to pay for it and local police are under pressure not to cooperate. (neat link: http://article.nationalreview.com/?q=YjQ0YTllNTg3YmE0ZTA0NTY4YjJiN2QwYTdjYjA4Mjk=&w=MA==)

**

Also, a while back CA decided that they would only pay the same welfare benefits to non-residents as their home state. The 9th decided that was discrimination (regulating commerce over state lines) and overturned it.

**

Many other states give out bus tickets to CA for their criminals and indigents too. Not uncommon for plenty of homeless folks to find their way to CA with the assistance of their home state.

**

The rent is now due.

Drew
 
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I'll take taxes and sunshine over snow, but the budget hole is as much as spending problem as it is a revenue problem. Any state government of this size is plauged by inefficiency and waste, so the spending problem will likely NEVER get solved. It is too bad the tax increase extensions didn't pass. I'm not a fan of more taxes, but I am a fan of people keeping their jobs. Now the State will have no choice but to lay people off.
 
I'll take taxes and sunshine over snow, but the budget hole is as much as spending problem as it is a revenue problem. Any state government of this size is plauged by inefficiency and waste, so the spending problem will likely NEVER get solved. It is too bad the tax increase extensions didn't pass. I'm not a fan of more taxes, but I am a fan of people keeping their jobs. Now the State will have no choice but to lay people off.

The problem that Cali faces is that just raising taxes, substantially, to fill the budget deficit will result in lost businesses to lower tax states, and those that remain will cut jobs if they can still operate with fewer staff. Raise property taxes? That'll lead to a still deeper housing bust.

There's only one solution and that's a Gov't bailout. If current debtholders don't take a haircut, then the bailout will become bailouts, every year.

California may be the posterchild, but there are many other state and local gov'ts in exactly the same situation. This is unfortunately just the tip of the iceberg.
 
California WILL keep getting bailed out by the feds. Obama also needs a reelection in < 4 years.

I'm paying 9% sales tax where I live.

Freeze the salary of california politicians. They shouldn't get paid for not doing their jobs properly. They also shouldn't be doing the job for the money anyhow. Service to your home/nation/country/people, everyone should do it atleast once in their life.
 
Frankly I am getting tired of the way CA is being run. In my county the sales tax is 9.75% and yet my city is in the red $11 million......but hey they just built one hell of a water park!! The problem with Gov and will always be a problem is fiscal responsibility until they know how to manage money taxes will never be enough........Schwarzenegger just got a honorary degree from USC with all the teachers laid off and more to come it seems thats the only kind of degrees one will get. Plus whatever Koolaid said!
 
No one has been able to run California since Reagan. I take that back- no one has been able to run California period.
 
Think about this for a minute. California is in the financial dumper for $21B and we're giving Palestine $900M and another $110M to Pakistan.

Obama has asked Congress to authorize $100 billion in loans to the International Monetary Fund (IMF) to help create a $500 billion global bailout fund.

Also Obama wants $81M to move the prisoners from Gitmo.

Giving $900M to Palestine and $110M to Pakistan looks like we're pouring water down a rat hole. Borrowing $100B from China to loan to the IMF just looks DUMB.

Why spend $81M to move 240 prisoners? I think that Obama fears that the Republicans will view this as a "moral victory" if he doesn't move them. Does anyone really care if they're moved or not?

I would have more respect for Obama if he would begin to show restraint by telling the rest of the world:"sorry we're tapped out right now...check with us next week."

ObamaMakeitRain.gif
 
Someone was having a debate with me about why Cali is in the hole in the billion$$. Millions of illegal people here making money under the table and sending most of it back to home country. Not paying taxes and not reinvesting back into the state. This has been going on for many, many years.

I know Cali has always been in the hole, but not that much $$$$ Billions. I think a lot of it is due to unemployment and foreclosures.
 
FYI: European countries have anywhere from 21% to 23% sales tax...

And your point being?

There is a good reason why we don't have kings and queens. Our founding father did away with them in the name of high unreasonable taxes.

If you think they have a fair tax rate, you always voluntary send in checks.
 
And your point being?

There is a good reason why we don't have kings and queens. Our founding father did away with them in the name of high unreasonable taxes.

If you think they have a fair tax rate, you always voluntary send in checks.

My point is that we yet don't have it as bad as other countries ( as far as sales tax), as for the founders of this country, watch this:

http://www.youtube.com/watch?v=mXr6BrKsdm8&feature=PlayList&p=CE024628590C1D4B&index=0

In this country nothing like this recession happens for no reason.
 
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