Why California is in so much trouble

An article in the PJ Tatler demonstrates precisely why California is so monumentally dysfunctional in terms of its state government, level of taxation, and frustration of its people. It lists every California state agency. There are so many I gave up trying to count them!

The Tatler notes:

Total number employed directly by the state- 350,000. Number of independent contractors who service these agencies? Unknown – but pretty close to everybody else. My personal favorite – California Smart Growth Caucus. Runner-up – California Cemetery and Funeral Bureau. Second runner-up – California Museum for History, Women and the Arts. You may have others. And remember – every last one of them gets a generous pension paid for by YOU.

There's more at the link.

With 350,000 state workers to pay, it's clear why the state's taxation is so ruinously burdensome to its citizens. More and more of them have had enough, and are voting with their feet. One writes:

I’ve lived in California for my entire adult life, beginning way back when I was a naive 18-year-old living in the dorms of San Jose State University.

. . .

But now I’m ready to move on . . . and I’m sad to say the reason why.

. . .

... one thing I’ve struggled with about California for years is the government. (Yes, I’m going to break my own unspoken rule and wax political on my blog.) The government is notoriously business-unfriendly–with everything from high taxes on business earnings to badgering businesses into more work.)

. . .

Here are a few things I’ve had to deal with:

• The State of California arbitrarily decided that all businesses that gross over $100,000/year should have an account where you have to report quarterly on the sales tax your customers pay you for goods sold. The only problem? My company only sold services–not products–which aren’t taxed in California. When I closed the account (by going into a local office and spending nearly an hour explaining my situation), they forced it open again and sent me a nastygram explaining that I would owe fines for not filing the quarterly report. You have to file it 4 times a year, and it takes time to fill out, even if you haven’t sold any products and owe the state nothing.
• The state charges an income tax of 10% on all income over $47,055. This is in addition to the Federal income tax of 25% on income over $34,001. This is also in addition to an 8.25-9.25% sales tax (depending on where you buy products.) I paid enough in income tax for 2010 to the state of California alone to hire another new worker for my business. I’d bet a lot of money that I’m far more efficient at creating jobs as a small business owner than the state is given the same amount of money. I’d rather have that money to hire someone.
• And a really dumb law for small business owners, which Meg Whitman promised to repeal: An annual fee of $800 just to have a corporation in the state of California. (Most states don’t charge you, or only charge you a few dollars, as an annual fee to set up a business. California’s is exorbitant, and it applies as long as you, the primary officer of the corporation, live in California…no matter where you incorporate.)
  

. . .

California just isn’t worth it. My priorities have changed. I value income freedom and flexibility more than I value living near the beach. I value having a paid-off house I can call “home” more than I value having a half-million-dollar noose around my neck that declines in value by the day.

Again, more at the link. (A tip o' the hat to Instapundit for spotting it first.)

California looks like a good State to be . . . from.

Peter