Why is California in such a Financial Crisis?

California is one of the most Liberal states in the country. Whether is it the Gay Marriage Debate, Illegal Immigration, or Women’s Rights, they have always been leading the way. Part of these more “liberal” principals is higher taxes on everyone, but mostly on the rich, used to pay for a large state government with many social programs. They have VERY high property taxes and very high state and local taxes. They also use a more progressive system then most states do. (The higher your income the higher the percentage of taxes you pay). With a top income tax rate (Including Payroll tax) on a Small Business owner in California of 61%, this system is opening the door for people to move Away from California and into other states that have lower taxes.

Texas is a good example of one of the states that is “taking” taxpayers from California. They have had little to no job losses in many metropolitan areas throughout this recent recession. By contrast to California’s 10.5% State Tax, Texas has No State income tax, so a family making $1,000,000 a year in California, saves $105,000 a year to move to Texas. Other states that have No State income tax are Washington Wyoming Nevada Florida North Dakota and Alaska.
On top of the problem of many high income taxpayers moving away, many of California’s cities advertise as “sanctuary cities” for illegal immigrants. They have been vocal with their unwillingness to seek out and send back immigrants that have not yet obtained legal status. This includes not only expired visas but immigrants that have just hopped over the border fence. The Sanctuary Cities do not deport immigrants even if they have been convicted of nonviolent crimes, and in some cases release, on bail, criminals awaiting trial of violent crimes including rape and murder.

An Idaho illegal offered $250,000 bail after being arrested for rape, after the victim, A 10 YEAR OLD GIRL gave birth to his baby.

All of the illegal immigrants in California and any other state they reside in are allowed full access to public schools and public welfare programs. The public school system in Arizona was SUED (and lost) because they reported a family of Illegal Immigrants to customs when one of their kids was caught dealing drugs in middle school. The Supreme Court determined that Education is a right for Anyone residing in the US, and it is Illegal for the school system to report anyone to Immigration Officials. On top of that the immigrants that do work are taking jobs that could potentially be filled by the millions currently on the welfare rolls. While those jobs are Low Paying they are generally the type of job that many on our welfare system would be qualified for.

What Californians face are High Taxes, Overpopulated Schools, undocumented Illegal immigrants filling up the Jail and Court system, and now with the recession, a jam packed unemployment system. On top of all that, as more and more people get fed up and leave, the budget deficit grows and more social programs are cut, leading to LESS overall benefit from the high taxes that are being paid. The only solution now is for the Obama Administration to give California a bailout with Federal Tax dollars. That means that everyone in the country, even those not residing in CA, or receiving any benefit from CA overspending have to pay their bill.

Over time, policy like this will hurt states like Texas and Florida, because Federal taxes will be raised to even out the state taxes. The Liberal states will not make it if people keep moving away, and they need to reduce that incentive, by forcing the raising of taxes in low tax states. Sometime in the future if things continue on this path I could see the state taxes becoming controlled by the Federal Government instead of the individual states. It’s a long shot, and maybe a conspiracy theory, but I see no other way for California to keep taxpayers from moving away and NOT lowering their own taxes.

On a side note I do give credit to California for some of the best state park in the nation, they have done a AMAZING job of keeping the pristine beauty of California preserved for generations. I lived there for 9 years and I absolutely loved it there in that sense. I also would like to say that I have nothing against Hispanic Immigrants, I am not a racist, but I believe in LEGAL immigration being the best way to move here. I wholeheartedly support anyone that wants to move to this country if they apply for visa, live here and apply for citizenship the right way. I even support them if they get a worker visa and leave or reapply when it expires. I do NOT support the migration of ILLEGAL Immigrants, or the renaming of ILLEGAL immigrants “Migrant workers” because “migrant workers” get VISAS.

Thanks for reading your comments are welcome and encouraged.