Taxation to Oblivion

One of the things that the politicians in California have turned a blind to, and hate to admit, is that rich people are leaving CA in fairly substantial numbers. I'm not trying to give you the impression that the LA freeway is jammed packed by millionaires in their SUVs with the golf clubs hanging out the back and the foof dog stuck on the dashboard.

But they are leaving none-the-less. Why? Well there are multiple reasons for this, but the consensus of the two primary reasons tells us that it is due to the taxes and the ever increasing illegal alien population.

CA is one of the, if not the actual, most heavily taxed states in the country. There are taxes after taxes after taxes after taxes there. While it may not seem like much, consider that Tiger Woods elected to leave CA and saved more than 5-million dollars a year in taxes!!!!

The same is true of other wealthy persons that are money conscious. Again, the politicians tell us that this isn't happening but the census tells us that it is. And there is one other thing that tells us that it is. Think about this for a moment - it is believed that CA has one of the highest concentrations of wealth (per state), and we know that they have the highest taxes of any state, and the state is going broke. How can that be? How can you have so much money and be taxing the hell out of the people and be going broke? Because the rich folks, the ones that pay the majority of taxes, have had enough and are getting out while more and more people flood into the area and suck up resources without paying taxes. That's how.

But CA is not alone. In the U.K. where socialist agendas have been pushing ever-increasing taxation corporations are pulling out and leaving the U.K. They are electing to go to other countries that do not have the same substantial tax burdens being imposed by the U.K. government.

And in the U.S. the same thing is beginning to happen. Energy companies have long been working to get out of the U.S. due to the increasing taxation and regulation burdens imposed by the government. I'm sure most of the greenies would say that is a good thing, and perhaps that is a topic of debate....but consider this: Those same energy companies are not only trying to be better at becoming more green, they are also the ones leading the front on alternative energy sources, AND....that creates jobs and stimulates the economy. But it's not just energy companies. And when any big company says that they don't want their world H.Q. in the U.S. anymore we should really be thinking about why.

History shows us that when big corporations leave an area that the area often has a lot of difficulty sustaining good economic growth. These corporations are going to leave voids that will need to be filled. But until the government realizes that they are not providing an incentive to be here this is not going to change.

And what will happen? Well, I'm certainly not an economist.....but the cycle seems to be this:
tax the shit out of 'em.
then they leave
then there is less money
so raise the taxes to make up for it
nobody comes
raise the taxes some more to make up for it
and on...and on...and on.... until something drastic changes.

I think we are heading for hard times if the cycle isn't broken.