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California waking up

February 23, 2009

The California dream is dying just a bit more. The Governator has signed a budget agreement that will add 1% to the sales tax rate (the rate will be 8.75% in Orange County, for example) and increase income taxes to a top individual rate of (probably) 10.425% -- without federal deductibility. A comparable Iowa rate, with federal deductibility, would be approximately 15.23% (compared to our current 8.98% rate).

The Governator kindly eased the pain for the movie business with targeted breaks - so the non-beautiful people get to make up the difference.

Very strange. Blaming California's problems on inadequate revenues is like blaming a binge drinkers problems on the high cost of alcohol.