Wednesday, July 08, 2009

So, the Banks Won’t Take California’s IOUs.

And why should they? California has one of the highest combined tax rates in the nation, but still manages to spend more than they can realistically tax away from it citizenry. State and local spending is up 84% between 1999 and 2008. That’s a straight average of over 9% per year, while the Consumer Price Index ( CPI-U) was only up a little over 29%. Was your income increasing 9% per year?

Fortunately, the legislature has really important work to do - increasing the regulation of honey, pomegranate juice, and the promotion of the blueberry industry is more important.

If I lived in California, I’d be wondering if the state would take my I.O.U in payment of my taxes.

By contrast, here in Ohio, state and local government spending only increased by about 62%. It’t s not like Gov. Taft and the Republicans in Columbus covered themselves with fiscal conservatism glory, but as a campaign slogan, “We’re not as screwed up as California!” his it’s limitations. Especially since Ohio has moved from a low tax state* (ranked #41 in 1982 in tax burden) to a medium taxed state (ranked 24 in 1993), to a “almost caught California” high tax burden rank of 7 in 2008.

*going from #41 in 1982 to #30 in 1983 is a killer.