Reason.tv: More Taxes or More Jobs? California Shows We Can’t Have Both
by Nick GillespieIt’s hard to find a politician who isn’t eager to “do something” about high unemployment. Turns out California has found one way to save and create certain kinds of jobs—spend like mad and raise taxes.
That job-creation strategy has worked quite well for government-sector workers. Problem is the statewide unemployment rate is still among the highest in the nation, and many private-sector employers are heading to states like Texas, where taxes are lower and regulations are lighter.
“I would love to have companies calling me saying, ‘We’d like to move to California, can you help us with that relocation?’ I get none of those calls,” says business relocation coach Joe Vranich. “The calls I do get are, ‘Hello, we want to move out of California, can you help us do that?’”
Vranich says there’s no one reason why businesses leave. He calls it “death by a thousand cuts,” where job creators get fed up with everything from high taxes to traffic gridlock and legal hassles.
Take Rick and Jack Newcombe, the father-son team that runs Creators Syndicate.
A long legal battle with the city of Los Angles might end up being their company’s final cut. The Newcombes say the city arbitrarily stuck the company into a higher tax category and officials are applying the hike retroactively. City officials are demanding $400,000 in back taxes, but Rick Newcombe calls the whole episode “legalized theft,” adding that a tax penalty of that size would force the company to lay off 10 employees.
It’s ironic that such drama unfolds in a city where Mayor Antonio Villaraigosa is always doing something—transit projects! green jobs!— he hopes will stimulate the economy. And steep statewide unemployment persists long after Gov. Arnold Schwarzenegger eagerly accepted billions in federal stimulus funds. In fact, the Bush-Obama scatter shot of bailouts, stimuli, and rescue plans has fallen well short of proponents’ promises.
Want to create and save jobs? Maybe it’s time for politicians to stop doing so much and start undoing some of their worst blunders.
“More Taxes or More Jobs?” is written and produced by Ted Balaker, who also hosts. Camera-Animation: Hawk Jensen; Associate Producer: Paul Detrick; Additional Photography: Alex Manning.
Approximately seven minutes. Go to Reason.tv for downloadable iPod, HD and audio versions of this and all our videos.
Subscribe to Reason.tv’s YouTube page and receive automatic notification when new material goes live.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
113 Comments
“More Taxes or More Jobs?” …can someone explain this to NObama???
Several years ago we had a rock tour (national band you've probably heard of) and my company (sound and lights) handled much of the central US on their concert dates. My company picked up the production on our tractor/trailer and carried them for about two weeks. We handed them off in Phoenix for the home stretch. It was SO cheap to get a 24' box truck in Dallas and drive it to Phoenix to handle the next date – and hand the keys over to the band's crew – for the final leg into California. I asked the rental company why the truck rental was such a rock-bottom price and got this reply: "We can make so much money renting this truck to someone who is LEAVING California that we really should be paying you to drive it out there for us."
The exodus from the Golden State has been going on for a long time.
"can someone explain this to NObama???"
The assumption being of course that Obama's goals include more jobs … better economy …stronger &, independent America
Gov. Arnold Schwarzenegger is a LIAR and a FRAUD. He should be brought up on charges for what he has done to California!
How can they go on like this????? It's insane!
I cant believe that, we the People, gave the keys to the money printing machine to a socialist…so stupid…
California has always been proud of the saying "As California goes, so goes the country". Now, the rest of the country should be afraid. Very afraid.
Look what he had to work with? Corrupt legislature, the f'ing teachers union with their lackey's in the legislature and their personl Teachers Union amendments to the California constitution..
Sure, it is all Arnold's fault…
Pull this leg and it plays jingle bells…
Here's one solution:
http://www.thepostemail.com/2010/04/11/kenyan-par...
How can it be legal to add a tax hike on a company, then charge them retroactively????? That is nothing more than stealing!!! No wonder California is in so much trouble..they're running people off!!
I have a great idea we should start working on right now, so we will never find ourselves in the mess we are in today. We need another amendment to the Constitution, So when our elected officials intact or pass a piece of legislation contrary to public opinion. We can put it on ice until it has had it's day in court. With a one third of states filing suit, and it should be frozen until it has had its day in court.
God Bless America
God Bless America
Revolting indeed.
Revolt in need.
California is already dead. Modern Lefty policies put that state into a "persistent vegitative state" back under Gray Davis. Arnold has scrambled to try to reverse the tides, but he had no help from the corrupt legislature, and the Teacher's union seems to OWN California at the same time as they keep turning out gangsta rappers and gangbangers instread of students.
Then to top is all off, CA is infested with San Fran, and Hollywood two of the worst lefty enclaves in the world.
I believe it will never recover.
Some of that is true, but the Governator is no fiscal conservative!!!
yip agree L666, but anyone I tried to tell he was a socialist, during the primary campaign, got a
glazed over look in their eyes, & their voice trailed off into the wild blue yonder. They didn't know
what a socialist was, probably vaguely remembered the word from HS history. They were so un-
informed it was sickening & too lazy to do the homework. Same folks will still be putting one foot
in front of the other stumbling through life when their job evaporates in the next 2 or 3 years.
California can't solve any of its problems because it has a system that effectively lets too many different interests filibuster the process — either party in the legislature, the voters through referendum. Essentially, he is up against several different, competing versions of "hell no" — there is no way to satisfy everyone, and no way to go around them.
Many are all forgetting or missing the biggest factor that those who have driven CA into the ground, Pelosi, Waxman, Boxer, Waters etc are doing the same exact thing to the USA!!!!
Send a Message to Politicians, Bias Media and Special Interest Groups http://www.youtube.com/watch?v=EWDaWBCk0FE
Its time for "out of the box" thinking in dealing with all politicians, bias fringe media and special interest groups who are only working for their own interest. Unconventional actions is what is going to be needed to affect real change through http://www.savingtherepublic.com
Many are all forgetting or missing the biggest factor that those who have driven CA into the ground, Pelosi, Waxman, Boxer, Waters etc are doing the same exact thing to the USA!!!!
Send a Message to Politicians, Bias Media and Special Interest Groups http://www.youtube.com/watch?v=EWDaWBCk0FE
Its time for "out of the box" thinking in dealing with all politicians, bias fringe media and special interest groups who are only working for their own interest. Unconventional actions is what is going to be needed to affect real change through http://www.savingtherepublic.com
Iam looking for a nice Ocean front piece of land in California, preferrably the North half, anyone have any suggestions, I should be able to get it cheap right??
He is a damn sight better than Gray Davis. I voted to recall Davis, and I voted for Arnold knowing he was more RINO than I'd like, but he was the best choice I had then… Later I moved away, never to return.
Lets see: Can't breathe the air, can't drink the water and you can't find a decent pizza!
We are surprised why?
Beautiful California, from a farmers point of view a land of abundance. My heart is heavy at its demise.
I think of all the folks from OK & AR who left their states during the dust bowl to find jobs & become pro-
sperous. Have their esteemed Universities never turned out a respected Economist to whom their state
legislators would listen?
I remember my buddy asking me if I was watching the debate between Obama and McCain. I was, but to be funny, I said no; I told him I don't want to waste my time watching an old geaser and a Socialist whine like a chick. He hung up the phone in disgust. Turns out, he didn't even vote and was trying to ridicule me for who I voted for. Socked him in the jaw, gave him a beer, and we're still close friends. We're both a little wiser now. yet he is unemployed, sadly.
A similar attitude seems to be developing here in Colorado. The democrat dominated legislature is considering a measure that eliminates all incentives for businesses. I simply don't understand why politicians refuse to look at the history of socialism and its unilateral failure as a means of allowing the human spirit, soul and mind to prosper. Colorado's legislature is only in session 4 months, and is due to end this month. They've already done a lot of damage, and opposition to the above is mounting in hopes we can forestall it to the end of this session and then vote the bastards out in november.
Wishful thinking, unless you are rich, but not for long if it is up to Obama.
God Bless America
You really need to hear this.
http://www.politico.com/news/stories/0410/35647…..
So sad. I remember when Carter promised many more jobs and much lower inflation. I recalll very few econ majors at that time. I also am convinced that Carter didn't know he was lying.
Why don't people leave California more quickly?
He is a F*ing ACTOR! What did you expect. Jeesh people. You hire a B movie body builder and expect him to be a good governor. Ive been laughing at this for years now and you guys are finally catching on.
Ronald Reagan was a B movie actor, and he rocked as a President…
Must be the bodybuilder part of the equation that made Arnold fail…
That or the corrupt legislature and the peeps of CA ho were addicted to their lefty policies and pap and unwilling to let him FIX anything.
I left San Fran in 1992 – best decision I ever made.
how many times does the right have to prove that lowering taxes creates jobs. they are so stuck on the idea of stealing corporate money and stealing entrepreneurs money they cannot get it into there head that when they do, the KILL the job market.
Well the good news is they can't. It'll just implode some day. I'm not sure exactly what that looks like but I don't think it's pretty.
Now, the bad news is they can't. It'll just implode some day. I'm not sure exactly what that looks like but I don't think it's pretty.
And myself, my family and my business are next.
Hasta la vista, comrades!
Hmmm… unions sucking the life out of our country… what else is new.
Pay attention maroon! Arnold, Stallone, Norris, Reeves, Willis and everybody who ever played Batman couldn't fix this.
It was over long before Arnold became Gov.
It's been over for a long, long time.
Just ask Jerry Brown.
SchwarzenKennedy also has a stupid electorate! I know, I live here.
This little blog started as a news blog for the city of Concord and the nearby town of Clayton (they share a border). Read the comments under "Talk about Politics." You'll understand why this state is in the trouble it's in.
http://claycord.blogspot.com/2010/04/talk-about-p...
How about this one for a hassle…my families manufacturing business has to deal with OSHA,CALOSHA,Alameda County OSHA,city of Hayward OSHA….Same for EPA.We pay way too much into CA's wokmans comp(CA fixed this crooked agency ,who has had three directors prosecuted in recent years, by raising the rate immensly and denying most claims, thus not paying out and "saving" its workmans comp fund).Just by luck we have made enough money to stay in CA in recent years, but that luck will not last.Between CA and the federal governments plan to tax us for healthcare and 'carbon', I am sure my father will retire and sell or just close the doors in a few years from now.
You forgot the taxpayers money that is being 'stolen' to finance the stimulus and bailout schemes.
SF just announced that it has a huge deficit…they might call you for a donation.
The crooked lobbyists offer more than economic studies….
Indeed, CA has lead the way!First in stupidity, last in education….is there a correlation here?
Indeed, CA legislators were so pissed that Mass. passed the first state healthcare system a few years back.How dare some other state do something as idiotic as CA!
I blame the legislators and their lobbyist and union friends….who would even want to be governor of CA anyway?The next governor should be a director of an insane assylum!At least he would know how to deal with the insanity that is CA politics.
Unfortunately for Texas, the liberal idiots that bankrupt CA and themselves have relocated to a brand new source of income to be redistributed.Texas should have been checking people at the border years ago.Austin is getting to be as weird as SF….
California's problem is their government is infected by a bunch of progressive nitwits…
California shrugging, I should know, I left.
YOU the people may have given him the keys, ME the people didn't!
I also was appalled at the states' ability to tax retroactively, seems like something the
Soviet Union would have done. Hope it is not an indicator of things to come, for the
rest of us.
At least California has ensured that the people who produce those stupid, mind-numbing, make-you-want-to-say-D'oh signs that read, "Warning the State of California has determined that (drinking alcohol, eating raw seafood, smoking cigarettes, etc., etc, fill in the blank) may be hazardous to your health" will always have jobs.
I wonder if they've outsourced making these sign to China?
I think that another amendment is also needed…TERM LIMITS for Congress, the Senate and the Supreme Court!! It is ludicrous that WE THE PEOPLE have to PAY the salary of these idiots when they are capable of making a living without US paying their enormous pensions!!
You sure you want to deal with the California Coastal Commision!
Denverbuilder…the reason Colorado is being ruined is because all the Libs who ruined California are now moving out of the state to find more states to ruin. The L.A. Libs already moved to Arizona 10 years ago to ruin the state. Colorado is now in the cross-hairs! You all need to stop the takeover of your state, too! Good news for California…..less Libs here now…
Any California residents thinking about voting for Meg Whitman, please think again, she is a Mccain/Arnold type Repub ( open borders, amnesty, global warming) who will do nothing to change this State..
Until we have honest and competive Congressional districts drawn,
NO ONE CAN DO ANYTHING POSITIVE…
The place is a nightmare, waking up the people may help…
[...] » Reason.tv: More Taxes or More Jobs? California Shows We Can’t Have Both – Big Go… [...]
the People as in the majority in a democratic election, hell no i didnt vote for Oprahbama
IdahoGal,
Pretty slim pickings on that blog… Nothing like here on the Bigs…
You can always move, I did…
The electorate is addicted to their progressive pap and large sections are completely brainwashed.
It is sad.
It gets much worse. Colorado actually ranks in the top three among states on a freedom study I linked a few posts back. I believe New Hampshire and South Dakota were the other two states in the top three.
California,New York,Mass, New Jersey, What is common with these states. Highest taxes in the country. Why? Blue states, The economy is bad, unemployment is over 10%. Taxes will go up. And they say the dems are for the working people. We are watching California to see what happens next. This november should be interesting, Your state might be the first to legalize pot, And start generating another source of much needed income . And we hope you fire the politicians who have created this mess.
Linked to your post from We The People California
The anti-business climate in California is one of the biggest if not the main reason for The California collapse. Businesses have moved out – they wont be moving back. Unemployment has gone up – there are not enough employers. Services are being forced to be cut – the tax hikes that drove business out have left less total revenue to the state – The State has borrowed money but the creditors see that California is approaching Bankruptcy.
No Businesses – No Jobs – No tax revenue – No services – Poster child of failed tax/borrow and spend economics.
Foreclosures are effecting even the best high end homes. Yes you can get housing cheap right now based on the inflated prices of the past – Still to build a home in most locations requires and arm and a leg in fees so the cost of a home is a lot higher than the actual building costs – you could get a better home without the taxation on say the coast of Texas.
Banks are not convinced that home prices will rise – trying to get a home loan may be difficult until it is clear that housing has hit bottom. Repositions would be the way to go.
Please God, make them show you an NRA membership card or something that could vouch for their character. I think I will have to move to TX soon just to get to freedom, and I don't want my looney neighbors from CA polluting TX like they have CA. –JustLurkin
20+ billion dollars in the hole and the pols still intend to spend more money to placate the greedy unions. They eye Prop. 13 as the answer ("We'll just tweek it a little bit."). In the meantime, business are steadily flowing out of CA (look at the business tax revenue – dropping every year). Before long, you'll have Hollywood and little else to pay for the needs of the public. Taco stands and 7-11's won't/can't/will never generate the income to feed the monstrous state budget. CA deserves this and it's coming now.
Purchase mp3 music online…
Superb site, thanks for the useful and interesting article….
Healthy diet plan…
Best wishes!Your blog is very good!…
Healthy diet plan…
nice, thank you so much
…
Unique Wedding Ideas Planning…
This article is now pardon? I need, thank you….
Hi…
I saw this really great post today….
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
Improve your vision naturally!…
Thanks. Left you a trackback to help your readers improve eye vision naturally….
Get your online degree!…
Left you a trackback for your readers to help them get an online degree….
Best Links 2011…
Somebody essentially help to make seriously posts I would state. This is the first time I frequented your website page and thus far? I amazed with the research you made to make this particular publish extraordinary. Fantastic job!…
Best Links 2011…
I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is …
Online Article……
[...]The information mentioned in the article are some of the best available [...]……
Best Links 2011…
The blog was how do i say it… relevant, finally something that helped me. Thanks…
Our Trackback…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
Cool sites…
[...]we came across a cool site that you might enjoy. Take a look if you want[...]……
Trackback Link…
[…] … great article that everyone should read […]…
Gems form the internet…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
[…] … great article that everyone should read […]…
[...]The information mentioned in the article is some of the best available [...]……
Links…
[...]Sites of interest we have a link to[...]……
Visitor recommendations…
[...]one of our visitors recently recommended the following website[...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
Links…
[...]Sites of interest we have a link to[...]……
[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over[...]……
[...]Sites of interest we have a link to[...]……
Cool sites…
[...]we came across a cool site that you might enjoy. Take a look if you want[...]……
Check this out…
[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……
[...]one of our visitors recently recommended the following website[...]……
[...]The information mentioned in the article are some of the best available [...]……
Online Article……
[...]The information mentioned in the article are some of the best available [...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over[...]……
[...]Sites of interest we have a link to[...]……
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
Websites you should visit…
[...]below you’ll find the link to some sites that we think you should visit[...]……
Best Links 2011…
Undeniably believe that which you said. Your favorite reason appeared to be on the web the simplest thing to be aware of. I say to you, I definitely get annoyed while people think about worries that they just do not know about. You managed to hit the n…
Sites we Like……
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]……
Best Links 2011…
Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantas…
Gems form the internet…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
Great website…
[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]……
[...]Here are some of the sites we recommend for our visitors[...]……
[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]……
You must be logged in to post a comment.