How to reduce the California state budget by $40 billion

The pending federal tax bill may cause important high-income earners to leave California ■ Edward Ring / Contributed As of a few days ago, high-wage earners have a new reason to leave California: their state income taxes no longer will be deductible on their federal income tax returns. Can California’s union-controlled state legislature adapt? Can they lower the top marginal tax rates to keep wealthy people from leaving California? The short answer is, no, they cannot. They cannot conceive of the possibility that California’s current economic success is not because of their confiscatory policies, but in spite of them. Earlier this year, California’s union controlled legislature approved a gas tax increase

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