As to California specifically, “high taxes” is a bit of an incorrect stereotype. If you look at a combined burden of local sales tax rates, state income tax rates, estate and inheritance tax rates, and property tax rates, California is actually pretty low compared to many other states (NY State, for example) — especially for middle and lower income folks. And, in fact, there have also been tax revolts over time — everything from Prop 13 (limits property tax increases) to revoking a luxury tax on expensive vehicles statewide. In both cases, these taxes used to pay for a lot of public programs and services…and now that money is gone.
What is really burdensome in CA (especially where I live, in San Diego) is the overall cost of living — food, medical expenses, gasoline, water, energy, apartment rental, home purchases…pretty much EVERYTHING costs more in CA (Sperling’s Best Places puts San Diego at 160% of the U.S. average). And, let me tell you, 160% is painfully high. Now combine this with the fact that wages are very depressed in California — and especially SoCal — to the tune of about 65% of similar metropolitan areas. So you pay more to live here, but earn less. They call this the “sun dollar” tax: because it’s sunny, beautiful weather, you have to pay extra for it. It’s also a consequence of having a LOT of cheap professional labor from Mexico making daily trips across the border to fulfill routine business and consumer needs — this takes a sizable chunk out of local business revenues in some industries, and depresses prices across the board for many goods and services.
Homelessness happens because of many of these economic factors…but the homeless population in California has also grown because people will come here from other places in the U.S. due to the climate year-round. It’s really a great place to be homeless — you aren’t likely to freeze to death.
But again…the reason all of this happens DESPITE really successful wealth production in California is because capitalism doesn’t distribute the wealth it generates — instead that wealth accumulates with owner-shareholders (many of whom may not even live in the state), who don’t necessarily spend that money in California either…and certainly not a lot of it on poor and homeless folks.
My 2 cents.
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