Point of No Return! California Faces Imminent Financial Collapse!
California has a debt of $340 billion, debt that majorly increases by state’s 2016 ballot measures, and now major economic experts report it is in menacing economic collapse.
The state has gone off the cliff and Sacramento is still going full speed ahead!
“California is a cautionary tale for taxpayers in the rest of the country,” says Stephen Frank, “The people of California are being burdened by an unsustainable, unfunded liability – a $1 trillion dollar government pension system. At the end of the day under California law, the taxpayers will subsidize the shortfall in the budget.”
California is in economic collapse: while tax revenue increases, the policies to kill off the state are in place and beginning to take effect,” Frank says.
Not worried about economic collapse, they are focused solely on policies on climate change, health care, civil rights and immigration.
California has a powerful economy, with 14 million private-sector jobs. It also has burdens: welfare recipients (12.6 million), generously paid government employees (2.1 million) and people collecting government pensions (1.3 million).
There are 114 people drawing from the government for every 100 people chipping in by working outside the government and paying taxes.
As for pensions, there’s trouble in the private sector too.
The aggregate funded status for the largest 100 defined benefit pension programs among publicly traded companies dropped to 81 percent as of Dec. 31, 2014 from 89 percent a year earlier, according to a study from consulting firm Towers Watson.
City Journal recently laid out the economic nightmare awaiting California taxpayers. The magazine reported that over the course of decades, greedy labor unions and willing politicians in state government conspired to transform what began as an austere public pension system in the 1930s into a lavish, taxpayer-funded behemoth today, a system that is unaffordable now.
California has the highest state income tax rates in the entire nation. For many Americans, the difference between what you would have to pay if you lived in California and what you would have to pay if you lived in Texas could literally buy a car every single year.
Get that? Move from California to Texas and get a free Car!
The state government in Sacramento seems to go a little bit more insane with each passing session. This last time around, they were talking about going to a single-payer healthcare system for the entire state that would have cost California taxpayers 40 billion dollars a year! They are still driving and they already ran off the cliff!
A lot of money is being made in Silicon Valley these days (at least for now), but poverty is also exploding in the state. In desperation, homeless people are banding together to create large tent cities all over the state, and the L.A. City Council recently asked Governor Jerry Brown “to declare homelessness a statewide emergency“. There are even people working at Facebook and Google that are living in cars and garages!
Not only that, California has some of the most ridiculous housing prices in the entire country. Due to a lack of affordable housing rents have soared to wild extremes in San Francisco, where one poor engineer was actually paying $1,400 a month to live in a closet.
To make matters worse, businesses are leaving the state in masses and families are following them.
Thanks to unchecked illegal immigration, crime is on the rise in many California cities. The drug war that has been raging for years in Mexico is increasingly spilling over the border, and many families have moved out of the state for this reason alone.
But taxes, income, jobs, and a plethora of other reasons have turned what at one time was a great migration to the Golden State into the great exit! Over the past decade, approximately five million people have moved away from California.
There is no improvement in sight either! All over the state, key infrastructure is literally falling to pieces. Governor Jerry Brown recently issued a list of key projects that needed to be done as soon as possible, and the total price tag for that list was 100 billion dollars.
After reading this article, perhaps you have a better understanding why so many people are getting out of California while they still can.
I did! My move to Texas four years ago was the best move I ever made! We took a 25% decrease in cost of living, a 15% increase in income, a $2 a gallon drop in gas, and bought a very nice 3,200 sq ft home for 1/3 of the lowest price you could have found it in California.
And yes, the tax savings paid for a new car!
So sad. Stop the madness liberals!