THE ISSUES
CALIFORNIA'S GAS CRISIS
On October 1, 2024, the price of regular gasoline was highest in California, at around $4.68 dollars per gallon. But wait. Higher gas prices are on the way because Gavin Newsom is obsessed with "cleaning the environment ." This was some 1.5 dollars above the national average of 3.2 U.S. dollars. California's ranking as the most expensive state for conventional motor fuel. Enough is enough. Gavin Newsom created the problem single handedly.
OUTRAGEOUS TAXATION
Let’s face it. Under the failed leadership of Governor Gavin Newsom, the People of California are now paying the highest taxes in America.
Personal Income Tax: 9.30%
Property Tax: 0.74%
Sales Tax: 7.3%
Gas Tax: $2.50 per gallon more in the Golden State.
Californians have the highest tax burden of any state in the US. Personal income tax is the highest in the nation at a staggering 9.3% and the state also has the highest sales tax at 7.3%. While property tax is low, home prices in California are high with a median price of 475,900.00 – which leaves Californians shelling out more combined state taxes from their pay than anywhere else.
We cannot and will not tolerate Gavin Newsom’s Taxifornia Scams ever again.
LEAVING CALIFORNIA IN DROVES: NEWSOMNOMICS HAS DESTROYED THE CALIFORNIA DREAM
Businesses have left California in droves since the day Gavin Newsom became Governor six long nightmarish years ago.
Here are the sad facts.
The California Globe reported the following:
- Why are California businesses fleeing the once-Golden State in droves? Several articles this week answer that quite clearly.
- “These exits negatively impact the state and particularly the local communities that lose these headquarters. Employees also leave, reducing demand within their former communities and reducing economic vibrancy. Jobs are not the only loss. There is also the loss of corporate income tax revenues, business property taxes, rents to property owners, payments to contractors, and fees to companies in the travel industry such as hotels and rental car companies,” Joseph Vranich and Lee E. Ohanian, reported in a study published by the Hoover Institution at Stanford in 2022.
- The state’s population also dropped by more than 500,000 people between April 2020 and July 2022, with the number of residents leaving surpassing those moving in by nearly 700,000, the Globe reported in February.
- Economist Art Laffer and Chapman Economics Professor James Doti lay out the numbers at the OC Register, and rightly declare that Gov. “Newsom doesn’t appear to see is the deleterious long-term effects of a highly progressive tax system. Case in point: The ‘one-percenters’ who pay 50% of the tax are voting with their feet by leaving California in droves.”
They explain that the ten states with the lowest income taxes including Florida and Texas, gained a cumulative net inflow from all Adjusted Gross Income (AGI) classes of $391 billion from California during the entire 2018 to 2021 period. Note that 2018 was the final year of Democrat Governor Jerry Brown. Gov. Newsom ran for governor in 2018 and was elected. He took office January of 2019, so the 2019-2021 belongs to Gov. Gavin Newsom.
“The 10 states that ranked the highest in income taxes — California, New York and New Jersey are in this group — lost a cumulative net inflow in AGI of $391 billion. The fact that the 10 states with the lowest income taxes gained in AGI the same amount as the loss in AGI for the 10 states with the highest income taxes is not a coincidence.”
The Hoover Institution’s report by Vranich and Ohanian further explains the outbound migration:
“We find that the number of companies relocating their headquarters out of California in 2021 occurred at twice the rate of 2020. Our findings show that 352 companies moved their headquarters to other states just in the period from January 1, 2018, through December 31, 2021, based on either the date of the announcement or the date of documentation with the state, whichever came first.”
“Every month in 2021, twice as many companies relocated their headquarters as in the prior year. The monthly average for 2021 also significantly exceeds the monthly averages for 2018 and 2019. California lost both very large companies, including eleven Fortune 1,000 companies between 2018-21, and small, rapidly growing companies with the potential to become transformational. From this perspective, California is not only losing current leading businesses, but potential future leading businesses as well.”
Here are the company departures by year:
- 2021: 153
- 2020: 75
- 2019: 78
- 2018: 46
Where did these companies go?
- SignEasy: Texas, 2020
- Finical: Texas, 2020
- Arcturus Aerospace: Arkansas, 2020
- KVP International: Texas, 2020
- FileTrail: Texas, 2020
- AgencyKPI: Texas, 2020
- The Joe Rogan Experience: Texas, 2020
- ShiftPixy: Florida, 2020
- The Daily Wire: Tennessee, 2020
- Titans of CNC, Inc.:Texas, 2020
- Saleen Performance Parts: Texas, 2020
- Amazing Magnets: Texas, 2021
- Alpha Paw: Texas, 2021
- Moov Technologies: Arizona, 2021
- Huckleberry Insurance: New York, 2021
- ProfitPay Technologies: Nevada, 2021
- Nissei America, Inc.: Texas, 2021
- Markaaz: Texas, 2021
- Flannery Trim: Texas, 2021
- SmartAction: Texas, 2021
- Darvis: Tennesse, 2021
- AHV Communities: Texas, 2021
- Andamiro USA Corp.: Texas, 2021
- AFC Finishing Systems, Inc.: Idaho, 2021
- Precision Swiss Products: North Carolina, 2021
- Ocean Aero Inc.: Mississippi, 2021
- Cangshan Cutlery Company: Texas, 2021
- OrangeGrid: Texas, 2021
- Old Gringo Boots: Texas, 2021
- The 360 Electrician, Inc.: Montana, 2021
- Gordon Ramsay North America: Texas, 2021
- The Rubin Report: Florida, 2021
- American Technologies Network, Corp. (ATN): Florida, 2022
- Noodoe: Texas, 2022
- Shelter Distilling: Colorado, 2022 (source)
- Sovereign Flavors: Texas, March 21, 2022 (source)
- HackEDU: Pennsylvania, April 18, 2022 (source)
- 828 Productions: New Mexico, August 19, 2022 (source)
- Cellipont Bioservices: Texas, August 30, 2022 (source)
- Runa Capital: Luxembourg, September 13, 2022 (source)
- Confer Inc: Texas, September 15, 2022 (source)
- Integrated Defense Products: September 19, 2022 (source)
- Pasta Piccinini: December 8, 2022 (source)
- Informative (formerly Credit Bureau Connection): January 19, 2023 (source)
- Autoslide: January 24, 2023 (source)
Buildremote.co reported: There were 61 companies which left California between 2020 – April 2023 with more than 100 employees. They’ve moved to 19 different states. Of those states, here are the biggest beneficiaries:
- Texas: 27 (44%)
- Arizona: 5 (8%)
- Colorado: 4 (7%)
- North Carolina: 4 (7%)
- Florida: 3 (5%)
- Tennessee: 3 (5%)
- Ohio: 2 (3%)
- Multiple locations: 2
- 11 states: 1
Economists Laffer and Doti concluded: “Given the clear evidence of people moving from states with high-income tax rates to those with lower rates, especially those with higher AGIs, Newsom might find that lowering tax rates results in higher rather than lower tax revenues. The Laffer Curve is likely to be even more relevant for states than nations. It’s a lot easier crossing state rather than national boundaries.”
Numbers don’t lie, but Gov. Newsom does.
No one is singing “California Here I Come” anymore.