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Election Day not only did 54% of Californians vote to increase taxes on the rich they also approved a sales tax increases well.
The only place in America -- state actually said let's raise our taxes for our kids for our schools park California.
Yeah yeah AA but critics say the new taxes are gonna hurt the already broke state and the question remains will the rest of the country follow suit.
Trees right now is John -- -- He is the president of Howard Jarvis Taxpayers Association the largest taxpayers group in California John thanks for joining us -- -- A it was a -- Steve how are you I'm doing OK but if I were -- high income -- net -- person out in California looking at that now where your income taxes at 13% and your sales taxes at seven and a half percent.
Yeah hello Florida hello Nevada about Texas Florida Nevada are all states.
That have zero income tax and we've now moved our top marginal rate to thirteen point 3%.
I mean this is a huge invitation for.
-- people to move out of state and we've already seen it.
We've already seen in terms of businesses huge.
Capital dislocation is what they call it what it really means is businesses -- leaving shall we saw accelerated business flight out of California and 2011.
-- twelve was going to be worse of course we thirteenth gonna be even worse -- that now I just looked like it explain if you would -- how they use education as a bribe to get people of Alfredsson.
Wells both abroad and extortion you know the bribe was Jerry Brown waving to order from -- dollars in front of college students saying.
This will be your rebate if you help me pass prop thirty.
The -- the extortion was your tuition will increase.
If if prop thirty fails so.
Look this is not this is right this is a page out of the playbook in California and that is using.
Students both K through twelve and college students as human shields to get tax increases what we need to do on our side for those of those were fiscal conservatives is really.
Convince voters connect the dots that the higher taxes are gonna result in much higher unemployment.
Sure we saw even a modest decrease in my unemployment we're that we're now down to.
Ten point one but that's still way above the national every amid word the big story.
California is a part time and -- exactly and I get why the students paid voted for 'cause they got some stuff and and we all love free stuff for John you say yeah I California really a ticking time bomb -- -- were short on time.
You still have 200 billion dollars with a pension unfunded liabilities out there.
Yes 200 billion and the unfunded.
Pension liabilities and total debt.
Including general obligation bonds revenue bonds about a trillion dollars I mean that's like a federal number that's a lot of zeroes so -- California is is still.
In a world of hurt economically.
And we're hopeful that people will wake up if -- if not.
We will see significant loss of business.
And high income individuals and -- our best educated students moving elsewhere well congratulations you got the highest taxes statewide in sales was in the country job out of college -- curious from the Golden State that it's there.
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