California is looking down a $15 billion hole, and Sacramento’s Democrats have the answer: tax businesses and high income Californians, not realizing that it is pretty easy to leave California. Taking the top rate in California to 11% is pointing the state’s most productive people to the door. There’s a reason why Tiger Woods makes his home in Florida, and the sort of rates the Democrats are proposing will accelerate the exodus.
The plans of the California Democrats are a glimpse of the 2009 Congress if Obama wins –the pent up tax hiking impulses of the left will take rates far beyond the already stiff hikes proposed by Obama. It doesn’t make any economic sense, but it appeals to the envy and anger the hard left uses to energize its troops.