According to the Tax Foundation, Californian taxes are high compared to other states. We are number one in sales tax at 7.25 percent. This doesn’t include the local sales taxes we pay or the 1 percent retail sales tax on lumber products that goes into effect on January 1, 2013. We only rank second highest tax for income tax. The rates are 9.3 percent for income over $48,029. When income reaches one million, the rate is 10.3 percent. You would think that we would be close to the bottom of the states for residential property taxes because of Proposition 13. But no, we have the tenth highest property tax of all 50 states. Only nine states have higher property taxes then we do. And that doesn’t include our tax like fees and direct charges such as rural fire prevention, ambulance and solid waste.
For the last 10 years we have a net-migration of 1.2 million residents. Our taxes and regulatory overkill are blamed for much of the fleeing from our State. According to the O.C. Register, the results are $29.4 billion in lost economic production. This decrease in economic production reduced our tax revenue by about $2.9 billion for the decade. Those lost tax revenues represent about 33 percent of the $8.5 billion that Govenor Brown’s tax increase will bring to our coffers.
According to S.F. Gate, our unemployment rate is 10.6 percent. Only two states, Nevada and Rhode Island, have a higher unemployment rate than we do. So the question is do higher taxes mean more prosperity or more migration of people and treasury, and higher unemployment?