Financial Troubles in California – A Business Owner’s Perspective

Having been a business owner in California for over 10 years, I have something burning in my craw. I’ve wanted to write this post for a while and today is as good a day as any. If you do nothing else today, watch the first 1 minute and 15 seconds of this interview with the Governor of California, Jerry Brown.

California apparently does not want successful people to live here.

Just ask Phil Mickelson. Because of this, prospective and current business owners alike are fleeing California by the truck load to never return. I can’t say that I blame them. After all, according to Jerry Brown they are simply “blessed the most” and have done nothing but disproportionately extract, by whatever skill, more and more from the national wealth. WOW!

Is that what Steve Jobs did? Is that what Larry Ellison has done? Did they not work hard to earn their success? Is their story not the American dream?

According to Governor Brown, they simply extracted money disproportionately from the national wealth, which is made to sound like they took it unfairly. So apparently there is a proportion which is OK, but if you go beyond that limit, you somehow scammed the system with your mad “skills”.

So why did I write this? I wrote this because I worry this type of thinking is going to cause Californians to NOT start new businesses and stifle business growth. Why use your creative minds and “skills” to come up with amazing new products and services if the state government is going to look at you like a scam artist and tax the hell out of you because of it.

It also worries me this type of thinking may be spreading to other states as well. This could be very well be the undoing of this great country that I love so much.

Thoughts? I rarely get political on my blog because it can cause huge derision, but in this case, I felt it was worth the risk.

I look forward to your comments.

6 Responses to “Financial Troubles in California – A Business Owner’s Perspective”

1. Savvy Scot on January 26th, 2013 3:56 am

   Very sad news… As a generation, we need to be supported and given new opportunities (TAX BREAKS) to be creative… Otherwise entrepreneurialism will die and we will become communists!!
   Savvy Scot recently posted…3 Things to Consider Before Jumping on the Property Ladder

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2. Ed Yang on January 26th, 2013 12:01 pm

   Unfortunately as a state and nation, we’ve gotten to the point where success is demonized and the state is turned to more and more for every single need. This is so far from the principles of our founding fathers. The question is whether we will continue down this path and mirror Europe, or if we will come to our senses and restore our great Republic. History doesn’t provide us much confidence.

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3. Laurie James on January 26th, 2013 7:50 pm

   I don’t think you listened, Brown kept stressing the need for balance between the taxes and spending. He has certainly made many cuts and taxes were only raised with voter approval. Now California is out of the red. If we had more compromise at the federal level, wouldn’t life be good. Laurie

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4. Ed Yang on January 26th, 2013 9:47 pm

   Laurie,

   All thing being equal, I would agree. However, California already has some of the highest taxes in the nation. It is also ranked dead last in a CEO survey of business friendly states. Thus, we see more and more businesses and wealthy people leave for other states. Furthermore, the state has absolutely wasted our tax dollars on insane benefits for govt union workers. And yes, people will always raise taxes on those who make more than them. That why Prop 33 failed…you know, the one that would have raised taxes on everyone. So before you come with your hands out for more taxes from me, ask the govt to stop wasting the tax dollars they already collect.

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5. Kyle on January 28th, 2013 3:58 pm

   @ Laurie – the all say we need balance, yadda, yadda, yadda. My point has more to do with the change in the way our culture recognizes successfully people in this country. By many, including Brown, they are seen as takers and are demonized when the fact of the matter is they are the backbone of our country and are the givers of jobs and opportunities for success.

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6. kathryn on January 30th, 2013 7:05 pm

   I think if governments could spend money wisely, taxes would would be a lot lower.

   I bet if government workers got a bonus for saving money, we could benefit.

   If it meant some jobs were lost, they could be transferred to other departments. It would take a long time to work thru all the misuse of tax dollars. It is everywhere.

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