California's Failed Economy: Ten Reasons Why It's Time to Leave

California is quickly going the way of Greece, Portugal, and other European Countries in economic collapse. Ten major reasons for California's rapid decline are listed below. These problems are not being adequately addressed by State or Federal government and, in many cases, they are being exacerbated.

Reason number 1, California has 12% of the United States Population, and 32% of US Welfare Cases. Supporting these welfare cases puts an extreme tax burden on the citizens of the State, while creating a large non-taxpaying political base that is more than willing to keep voting themselves additional benefits and entitlements.

Reason number 2, Highest State Income Tax Rate. The State's progressive tax rates escalate quickly to tap into middle class incomes going from 8.25% to 9.55% and then 10.55%.

Reason number 3, Highest State Sales Tax. California's 8'25% sales tax is the highest in the Nation.

Reason number 4, High Property Tax Rates. Despite the best efforts of Proposition 13, California's property tax rates are the tenth highest in the Country.

Reason number 5, Worst State to do Business. A recent survey of 500 CEOs ranked California as the worst State to do business. Business's have been leaving California at an alarming rate for many years, taking jobs and and tax revenues with them. This disturbing trend will increase California's financial difficulties, and the State legislature's propensity to continue to raise taxes and regulatory requirements on business, will only accelerate the exodus.

Reason number 6, Retirement Obligations to State Employees. California's guaranteed benefit retirement system for teachers and State workers is a ticking time bomb. A recent Stanford University study found that California's retirement obligations to it's State employees are underfunded by $500 billion. Under California law, that taxpayers are required to makeup this deficit. And you thought taxes were high now!

Reason number 7, Lowest State Bond Ranking. California's bond rating is the lowest of all 50 States. California continues to borrow money each year instead of passing a balanced budget. This has resulted in the State accruing $68 billion in general obligations bond debt. The State's poor bond rating means they will have to pay higher dividend rates to attract buyers, which will make it even more difficult for the State to repay debt and become solvent.

Reason number 8, Highest Paid State Prison Guards. California's 42,000 prison guards are the best paid in the Nation. With added over-time, it is not difficult to make over $100,000 a year, with some making $200,000 a year. The California Prison Guard Union, Teacher Union, and State Civil Service Unions own the State legislature and will ensure their members are well paid irregardless of the State's economic realities and uncertainties. Despite providing excellent pay and benefits for State employees, California has failed to provide enough facilities to house it's inmate population. This has led to court ordered releases of criminals that directly threaten public safety.

Reason number 9, The Idiot Bullet Train. Despite the State begin on the verge of default and complete fiscal collapse, California voters approved an initiative to fund a $10 billion, 800 mile, Bullet train to run from Northern to Southern California. If this fool's errand can ever get past the Environmental Impact Study, cost overruns are projected to push this project over the $90 billion mark. The smart money says, the State bond funds will be spent on study after endless study, but this turkey just won't fly.

Reason number 10, Medical Marijuana. California's medical marijuana law enables anyone with a desire to get a “prescription” to legally buy and use marijuana. For years, this drug has been touted as relatively harmless. Unfortunately, evidence does not bear this out. Marijuana use creates significant physical, mental, and social problems. Pot contains more than 400 harmful chemicals giving smokers have higher rates of lung cancer and emphysema. A recent study in England showed that cannabis users have more than double the average rate of paranoia and psychosis. The combination of these mental and physical issues creates additional strain on families, medical support systems and social support systems. None of these California can afford.

Nevertheless, large doses of medical marijuana may be required for those poor souls who can't devise an exit strategy off this sinking ship. The current and future avalanche of debt encompassing this State has stagnated the economy and robbed the middle class of much of their wealth. As of May 2011, the housing market continues to drop in most areas throughout the State, robbing homeowners of what equity the may have left and leaving them without the means to extricate themselves from this failed California dream.