It is two years since this article was posted; and the issues remain in the US although not as feverish as in 2008, however the country is still drowning in debt and in fact the debt has increased to a level where generations will be carrying this cost.

By cyrena, October 3 at 6:32 pm #

By outside talent I mean private industry and academia.

The smartest, most talented and gifted people do not reside in government.  We need outside minds to sort out the mess California is in and many will say close the loopholes.

By PatrickHenry, October 3 at 4:05 pm #

California has enough well to do folks and outside talent to resolve these shortfalls.

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Patrick Henry,

That may indeed ‘seem’ to be the case, (though I’m not sure what you mean about ‘outside talent’) because there are certainly enough well-to-do folks here. The problem is that THEY don’t contribute to the tax base. In fact, the FEDERAL loopholes, as well as the California ones, allow them to avoid paying ANY taxes when they have their yachts situated just far enough out to be in ‘international waters’. Or, they just cruise the world, (or say that you are) and avoid paying any taxes…anywhere. Since there’s really no way to check, these people only need to own boats/yachts, and claim them as primary residences, and avoid paying any taxes. And, that’s only ONE of the many loopholes they use.

The only reason I’m even aware of this now, (not being a yacht owner myself) is because it was one of the super contentious points in the argument over the budget. The legislature was trying to force Arnold to make them pay taxes and close those loopholes, and he’s not been willing to do that.

But, GA Anderson is right. It’s become far too costly to live here, and so we’ll all be leaving in droves, and that will decimate the tax base. The wealthy will have the place to themselves, and my own guess is that was the plan all along. Not just for California, but for the entire nation. If they could do this to hundreds of thousands of Native Americans 300 hundred plus years ago, the same can certainly be accomplished now.

California has enough well to do folks and outside talent to resolve these shortfalls.

GW—sorry. I have family in Denamrk and Norway. I havent talked to them about it but, I’m sure that they dont want this mess.

I wish I was in Norway….hooray! hooray!

California will probably be the first state to have to declare bankrupcy. This is not really a surprise… We send so much of our money to that sinkhole in Washington D.C., and we get very little back from the Feds.

The only way out of this mess is for California to leave the Union. If we were a country we would be able to do great things.

But instead in the next few years you will see California become unlivable, as the decay of our infrastructure increases in speed, and crime sky rockets.

The middle class will leave this state in droves, taking the tax base with them. All the legislature will do is fight over give-aways.

yellowbird—I agree completly.

I do think that most of the Scandanavian countries pay higher personal income tax, but I’m not sure of which ones. All the studies done, show that the majority of people in all these countries would NOT go back to “privitize” any of that stuff. They care about each other, though.

I think that their businesses actually pay a little less, but, they tax other things more—like capital gains, stock trades. etc. WE SHOULD!

If could be wrong abou this. (My Uncle in Denamrk said that that was true).

But, that only backs up your point. I’ve been waiting 25 yrs for the US to enact some of the basic protections that they enjoy in the rest of the “free world”. I am afraid that, if, after W, they wont try anything more socialistic, taht they never will. I hope i am wrong.

California and how many other states?  Then there’s Ford and GM.  How is IBM doing?  GE?

folks: THINK for a moment: Why do folks in Iceland live longer, live better? and same in Norway, Sweden, Denmark etc: most nations: they may pay even LESS TAX some pay none at all: YET every single one of them has far better schools, have medical coverage, have cars that for years have had 70MPG: the model T just had it’s 100th year anniversary; built to last 100 years; it ran on grain alchol (which our Gov later changed to oil) even tho the alcohol had no pollution factors at all. ABSORB the previous statement. Other countries do NOT use chemicals; most that are readily available in every store: are banned from janitorial places: problems to workers health. ALL have far better enriched lives: as many freedoms or more than EVER here in USA; even the HEALTH LIVES are far better. THEY have countries that do NOT allow the Corps to run the Gov; THEIR Gov’s from Fed, to St, to County, to City: are run without the pollution of graft & corruption. And everyone there lives longer, lives far better. NOW you have a clue: as to WHAT nation needs to get better. REMOVE politicians: get citizens back in. Amazing how all these even county commissioners got HUGE salary increases & bonuses on the side: for the “rebuild & renew” America but the PEOPLE once again are set up along with the planet: to be screwed.