Today is Tax Day. If you and your family are struggling over the financial burdens of our state’s wildly out-of-control taxes, you are not alone.
Here in San Diego County, the unemployment rate continues at an all time high, kicking off 2010 at 11% in January, up from a revised 10.3% in December. January was the county’s seventh month in a row with unemployment above 10 percent, characterized by economists as the longest period of double-digit employment locally since the Great Depression.
While Californians have suffered from a global economic slowdown, much of the damage is self inflicted. The tax and regulatory burden that California’s government has imposed on families and businesses in our state is the reason we will continue to lag behind the nation in recovery. The laundry list of taxes, including property taxes, gas taxes, airport taxes, hotel taxes, income taxes, probate taxes, and excise taxes, makes it difficult to quantify how much we all really pay.
Our estimated state/local tax burden 10.5% stands at the 6th highest nationally, with Californians paying $5,028 per capita in state and local taxes. But that just begins to explain the frustration faced by many Californians’ just trying to survive.
California ranked 48th of 50 states in the 2010 business Tax Climate gathered by the Tax Foundation. This index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.
California’s Top Individual Income Tax Rate Is 4th Highest in the Nation at 10.55%, and since most small businesses pay their business taxes at the rates for individuals, our state tax on small businesses constitute some of the most burdensome in the country. Meanwhile our Corporate Income Tax Rate is set at 8.4%, – the highest in the West.
Combine all this with the hardship of paying the highest state sales tax in the nation beginning at 8.25% and reaching as high as 10.75% once local sales tax included, I understand the frustration with the out-of-control taxing and spending in Sacramento.
As I’ve said before locally as Mayor Pro-tem of El Cajon, the problem is not a lack of funds. There is more than enough revenue from fair and appropriate taxation to pay for all of the basic programs that our state and local governments should be involved in. The problem is not one of revenue, but rather of excessive spending and government overreach.
California has become addicted to spending. Our representatives try and control our actions and even our thoughts by implementing massive programs that burn through our money. This concept goes against the most fundamental concepts of good government.
I believe that it is the duty of government to diminish itself to the point that the people are not burdened by taxes. It is the duty of elected officials to force the government to restrict itself to the functions of protecting the people and providing the necessary infrastructure for people to thrive. Other than that, it is the duty of government to get out of the way and allow the people to use their own God given talents to innovate, produce and succeed.
Until this is done, know that I will be a force against any new taxation.
As your representative in the State Assembly I will fight to reduce the size of government and its ability to overstep its bounds in your lives. I welcome you contact me with your individual concerns at Bill@VoteBillWells.com and to view my website at www.vbwells.us and join me in this campaign.