DeVore observes that businesses leave California for Texas for reasons beyond just lower costs, pointing to the Lone Star State’s hospitable regulatory climate. Beyond the direct dollar savings, businesses moving to Texas benefit from “stronger property rights that enable companies to build new headquarters and factories in months as opposed to the years it takes in California.” -by Sarah Rumpf
When people follow rules, they don’t expect to be penalized years later for having done so. But that’s what’s happening in California, where state tax officials have decided to retroactively apply taxes that small business owners and investors were told they would not have to pay.
California’s severe tax and regulatory system is the result of decades of legislation, but November’s Proposition 30 continues to look like the straw that broke the CEOs’ backs. The unintended consequences of that tax increase continue to be a bane to California and a boon to its neighbors.
Democrat, Liberal, Tax, Theft
Income taxes make up more than two-thirds of state revenue in the current budget year. And the most recent numbers from the Franchise Tax Board show nearly 90 percent of the money comes from one-fifth of the taxpayers – those making $91,000 and up. They belong to the only income range whose average income increased in the last two decades.
Democrat, Government, Incompetence, Regulation
Fitted or flat? That’s the weighty question facing the California Legislature, which is considering a bill that would regulate what type of sheets can be used on hotel bed mattresses across the state.
No one can use foam takeout containers or plastic carryout bags or play online poker. This is a state that wanted to ban you from eating the livers of waterfowl. If the state discovers you’ve purchased raw milk, a confiscation team may visit your home to impound the supply. The sale of caffeinated beer is forbidden. E-cigarettes are now treated as if they were tobacco, even if they are not.
In San Francisco, where it’s illegal to light your own fireplace during Christmas, if you fail to recycle your trash correctly you can be fined up to $500, but you can’t get a toy with your Happy Meal because they’re banned. In Los Angeles, you have to wear a condom to make a porno, but you can have unprotected sex in Caligula-style orgies as long as you don’t film it. -David Harsanyi