Colman: HOT PASTRAMI VS. SURFING

Richard Colman, the author of this article has a Ph.D.  Now I know why and how he got it.  Richard may have suggested the most brilliant plan EVER to depopulate California.  We already have large corporations and very rich people leaving the State.  Due to bad roads, high cost of living, failed schools that indoctrinate instead of education, the middle class is fleeing as fast as they can get a U-Haul reservation.

And the way to cut demand is for California to continue to do what it has been doing for decades:  raise taxes.

California already has the highest state sales tax in the nation (7.25 percent).  Local communities can add to this tax rate.  In one California city, Santa Fe Springs, the tax rate has been pushed from the 7.25 percent state rate to a local rate equaling 10.50 percent.

In 2012, California’s voters, under Proposition 30, raised the sales tax and the income tax.  When Proposition 30 did not bring in the expected revenue soon enough, the state’s voters, in 2016, passed Proposition 55, an extension of   Maybe we solve our overcrowding in hospitals and schools, our lack of housing with a simple plan to tax people to death in California.  If they refuse to die, they pass a bill giving them the free use of a U-Haul for 30 days—that will get a lot of folks out of the State.Proposition 30’s tax hikes.

California now has the nation’s highest — or second highest — tax rate for gasoline.

The good news is that the Sacramento Democrats and Newsom already are working on this.  So far over $10 billion in new taxes are being proposed—in the middle of an economic Depression.

HOT PASTRAMI VS. SURFING

By Richard Colman, Exclusive to the California Political News and Views  1/22/21

They have great hot pastrami sandwiches and kosher pickles.  We have surfing, beautiful beaches, and — in coastal areas — no snow.

“They” refers to New York State.  “We” refers to California.

Until around 1963, New York State had more people than any other American state.  Then everything changed.  During that same era, California surpassed New York State in population.  Specifically, California suddenly had more residents than New York State’s 17 million people.

And California’s growth did not stop.  By 2020, California’s population reached 40 million, more people than reside in all of Canada.

But, with excessive growth, problems emerged.

For the last several years, prices for residential real estate in California have skyrocketed.  A house in a decent neighborhood that cost $25,000 in 1960 now can cost $2.5 million or more.

Some say that California has a “housing crisis.”  When successfully campaigning for governor of California in 2018, Gavin Newsom promised to build 3.5 million new housing units by 2025.  Newsom wanted a “Marshall Plan” for affordable housing.  (The Marshall Plan was a United States government plan to rebuild Europe after the devastation of World War II.)

In recent weeks, Newsom has allegedly called for legislation to preempt local communities’ zoning ordinances — ordinances that favor the existence and development of single, detached family homes.  The governor’s plan calls for giving the State of California the mandate to construct high-rise, high-density housing (often called stack-and pack housing) in local communities where the state deems such housing is needed.

The core of California’s housing problem is excessive demand for housing.

So instead of government’s working to increase the supply of housing, why not go in the opposite direction:  cut the demand for housing?

Simple, elementary economics shows that demand for housing can be cut.

And the way to cut demand is for Califoria to continue to do what it has been doing for decades:  raise taxes.

California already has the highest state sales tax in the nation (7.25 percent).  Local communities can add to this tax rate.  In one California city, Santa Fe Springs, the tax rate has been pushed from the 7.25 percent state rate to a local rate equaling 10.50 percent.

In 2012, California’s voters, under Proposition 30, raised the sales tax and the income tax.  When Proposition 30 did not bring in the expected revenue soon enough, the state’s voters, in 2016, passed Proposition 55, an extension of Proposition 30’s tax hikes.

California now has the nation’s highest — or second highest — tax rate for gasoline.

For the state’s personal income tax, the top bracket is 13.3 percent, the highest top bracket in the nation.

With such high taxation already in place, California should have no problem raising property taxes, personal-income taxes, business taxes, and capital gains taxes even more.

Under a plan for higher taxation, individuals and business will be forced to leave California.  In fact, citing high taxation levels, such California-based firms as Hewlett Packard, Oracle, Charles Schwab, and Tesla (the electric car company) have announced plans to leave California.  Others firms have already left the state or closed down.  When businesses leave, their employees will also leave or possibly face joblessness.

California, with its beautiful Yosemite Valley, redwood trees, scenic coastal highway, and beautiful beaches, should abandon plans to construct additional housing.

With higher taxes, people and businesses will automatically leave.

Who knows?  With sufficient higher taxes, California’s population may drop back to 17 million people.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. The Biden Administration will undoubtably bail out California and New York’s incompetent governors. The problem is the shut down of energy independence by Biden will raise the price of gas once again. California is already losing businesses that depend on competitive transportation costs and well maintained roadways.
    There is a breaking point coming and the new Democrat administration is putting it into overdrive.

    • The list of states opposing a bailout for California and New York (and others) is growing. States that are budget responsible are being asked to prop up those who are not. Non starter.

  2. Mary Cunningham says

    The housing crisis is also helped by Covid. The death rate has increased and with Biden’s open borders the rate of increase in infection should increase. She, your government is taking care of the problem of housing.

  3. Marcy Berry says

    Laughed out loud at Dr. Colman’s brilliant plan — solve the housing crisis by depopulating the state. That’s what is happening! Are any of our fearless leaders lucid enough to be aware this is a workable plan, or the whole action/consequence paradigm is escaping them?

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