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Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

California’s Government Has Destroyed the State With High Taxes

Politics / Taxes Aug 31, 2013 - 01:32 AM GMT

By: Jeff_Berwick

Politics

The mayor of Los Angeles has declared a “state of emergency”.

Hollywood’s movie industry is being ceded to other states and countries whose favorable tax “credits” are increasingly luring away movie and television production. As competition both in the US and abroad continues to grow, the state’s market share and longtime stronghold on production jobs and spending are fast evaporating.


The main problem is taxes. California’s government has so destroyed the state that its only option to keep afloat is a continued rise in taxes.

In response, people with money have been fleeing the state for other states. Tiger Woods left to Florida years ago and Phil Mickelson stated he was going to leave California for Florida as well for a better tax environment. He then got a phone call and the next day he apologized for saying it!

But countless others have not-so publicly just fled the state, many going to Florida.

New York and California have lost the most in the last decade while Florida was the largest net recipient due to its much better tax environment.

Beyond tax, the governments in California have also been destroying other industries as well. The city and county of Los Angeles recently instituted a law requiring that all pornographic movies made in their territory have to use condoms.

This, in turn, has the porn industry fleeing LA to places where they are not forced to do such things because their consumers don't like seeing condoms on the male actors and using condoms (instead of relying on testing) would hurt the industry.

In typical government fashion, California is considering “tax credits” for those who make movies in the state. Of course, all this does is transfer the tax burden to other industries, which will also then flee.

The state is a large, violent, blind monster swinging wildly in the dark in a room full of hand grenades. Even if it wants to help, it can’t because it relies on violent coercion instead of market feedback and response. It just continually tries to transfer wealth from one group to another until one group nearly dies or leaves and then it reverses its course to “save” those it has damaged reverting the damage to other people. This goes on and on until every industry is dead or has left. The politicians and their friends always seem to do well in the process, however.

We always recommend getting completely out of the US and going to a jurisdiction where the tax environment is much less oppressive. Or, becoming a permanent traveler/prior taxpayer (PT) – something we regularly talk about in the TDV newsletter - and adjusting your affairs worldwide in such a way that you legally don’t pay any tax.

Or, if you cannot or will not leave the US you have to pick your poison. If you have to do that pick the best poison of the lot. In this case, head to Florida like everyone else.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2013 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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