Another business thinking of leaving CA

Mayflower moving truck - wikipediaJan. 14, 2013

By John Seiler

Despite assurances to the contrary from Gov. Jerry Brown and others, his Proposition 30 tax increase will drive thousands more businesses from this state. He and President Obama insist that such people must “pay their fair share.” They reply: We already pay too much!

The Orange County Register’s Jan Norman today profiled one such person:

“Melton International Tackle, which sells fishing gear worldwide, is marking 20 years in business in Anaheim during 2013. It may be the last.

“Owner Tracy Melton is consulting with his financial experts and exploring other locations for his 30-employee companyHe says recent state tax hikes may be the final straw that drives him out of what he considers to be a state unfriendly to businesses.”

Brown and Obama portray business owners like Melton as filthy rich folks, lounging around on yachts while they punish the poor. The opposite is true.

“‘I am not rich by any means,’ Melton said ‘I work hard, keep 30 people off unemployment, and my reward is that the state and feds want to take more than half of any profit I make’….

“In November, California voters approved Proposition 30, which increases the sales tax a fourth of a percentage point (now 8 percent in most of Orange County), and hikes the state income tax for individuals earning more than $250,000 a year. That income tax increase hits many entrepreneurs, including Melton, because they structure their companies to pass their revenues through to the owners who pay individual income tax.”

54 percent

The tax increase on “the rich” means that entrepreneurs like Melton will have less money to hire people, or even to keep those they do hire. The money will be stolen from the productive private sector and forked over to the counter-productive, parasitic government sector.

“Melton said his tax rates will total almost 54 percent — 39.6 percent for federal income tax (recently increased), 10.3 percent for state income tax and 3.8 percent Medicare surcharge for adjusted income over $200,000 for individuals, $250,000 for couples.”

And for what? The worst federal and state governments ever heard of. California’s recent $6 billion tax hike from Prop. 13 was advertised as going entirely to schools K-12. But Brown’s new budget proposal sends just $2.7 billion to $K-12 schools. And a lot of the tax-increase dough actually will go toward pensions. In any case, California’s horrid schools score among the worst of the 50 states.

“‘I don’t mind paying my fair share, but I don’t think it’s fair that I have to work until the 4th of July to pay my state and federal taxes,'” Melton said.

“He is referring to a ‘Tax Freedom Day’ calculation that the Tax Foundation, a Washington DC advocacy group, came up with when considering how many days Americans would have to work just to pay all their taxes. Residents in high-tax states such as California and high-income individuals would have to work longer.”

It’s ironic that Melton’s “tax freedom” day is on July 4, when we celebrate our independence from British tax tyranny. And King George III only wanted to put some small taxes on tea and paper.

Our modern tax tyrants are far worse. The best way to avoid them is to leave. It’s easy to leave California for places with no state income tax as Texas and Nevada. Unfortunately, it’s a lot harder to leave the United States and such tyrants as Obama and Republican House Speaker John Boehner, who also crafted the massive new tax increases.

But we’re going to see more people flee California and even the United States to freedom.

 

11 comments

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  1. cacheguy
    cacheguy 14 January, 2013, 08:24

    I am retired and my wife and I may move out of California soon. This state is completely disfunctional.

    Reply this comment
  2. Tax Target
    Tax Target 14 January, 2013, 09:05

    Right behind you….

    Reply this comment
  3. SeeSaw
    SeeSaw 14 January, 2013, 09:20

    You can all go, for all I care. Good luck! Don’t let the door…………

    Reply this comment
  4. loufca
    loufca 14 January, 2013, 09:30

    Good SeeSaw. Let’s get rid of all the tax payers. Remember as Margaret Thatcher said’ “the problem with socialisn is what happens when you run out of other peoples money?”

    You’re very short sighted and can’t see the actual problem. And be careful, some day, if you’re successful, you may leave a location because of being over taxed. But, if you belong to a public union, I guess it wouldn’t matter until the money runs out and the state files bankruptcy.

    Reply this comment
  5. Dirtbos
    Dirtbos 14 January, 2013, 09:59

    The fire gets hotter under the “financial meltdown pot” in California. I am just waiting for my Wife to retire, so we can to move back to the United States of America. We will watch from afar as California liberals destroy this state. It will be sad, but it is inevitable.

    Reply this comment
  6. us citizen
    us citizen 14 January, 2013, 10:44

    Thinking about it seriously and taking 3 small businesses with us. Hope MY money was going to seesaw………….

    Reply this comment
  7. SeeSaw
    SeeSaw 14 January, 2013, 15:06

    Well, Loufca, states can’t file for bankruptcy. I am retired and I did belong to a union when I worked–not all public workers do. Who knows us citizen, my money might have been going to you.

    Reply this comment
  8. CalWatchdog
    CalWatchdog Author 14 January, 2013, 15:26

    SeeSaw: Although state’s can’t “file” for bankruptcy with the federal government, at least for now, they can go bankrupt, and have in the past. They just default on their bond payments:
    http://www.survive2thrive.net/2009/12/21/states-going-bankrupt/

    — John Seiler

    Reply this comment
  9. Hondo
    Hondo 14 January, 2013, 18:23

    It isn’t the ‘rich’ millionaires that get hit hardest by these tax increases. It’s the small businessmen who’s companies aren’t big enough to go corporate, and have to file as a ‘person’. Plumbers, electricians, restaurant owners, carpet layers, will get killed by this ‘millionaires’ tax. Especially newer businesses who may show an income of 300k, but after expenses, may take home 30 or 40k. It’s these small businesses that are the key to getting us out of downturns in the economy. Between these tax increases and Obamacare( which is nothing but a huge tax increase for everybody)I’m not starting up any small business any time soon. Nor are many in the state.
    Hondo….

    Reply this comment
  10. Rex the Wonder Dog!
    Rex the Wonder Dog! 14 January, 2013, 21:51

    SeeSaw says:

    Well, Loufca, states can’t file for bankruptcy.

    ==
    Well seesaw, states dont HAVE TO file bankruptcy as they are IMMUNE from lawsuits under the 11th Amendment. They simply don’t have to pay.

    So sad, too bad seesaw.

    Reply this comment
  11. Rex the Wonder Dog!
    Rex the Wonder Dog! 14 January, 2013, 23:25

    SeeSaw says:

    You can all go, for all I care. Good luck! Don’t let the door…………
    ==========
    Stay classy seesaw 😉

    Reply this comment

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