The largest issue keeping California from adopting this simple economic equation is out-of-control government spending. One of the most significant drains on California’s collected revenue is the state’s pension program and unfunded pension liabilities. Just last week, the California state legislature approved full funding for the troubled California State Teachers Retirement System (CalSTRS) – which is currently only 67 percent funded – to the tune of over $5 billion dollars coming from school districts that get no offsetting money from the state. However, as noted in my newest book (An Inquiry into the Nature and Causes of the Wealth of States), California already pays its teachers almost 50 percent more than Texas, despite employing 40 percent fewer teachers per 10,000 people than the Lone Star State, and despite the fact that California students rank fifth from the bottom in education testing scores.
Sunday, June 22, 2014
California Can't Mimic No Income Tax Texas Without Substantial Spending Reforms
So, if you get rid of CA income taxes and sales taxes, you'll automatically turn into TX? Really? I don't think so. There is an ideological difference between the two that is wider than the Grand Canyon.