Skip to comments.Is California Cracking Up?Townhall.com ^ | August 10, 2017 | Victor Davis Hanson Posted on 8/10/2017, 8:20:08 AM by KaslinCorporate profits at California-based transnational corporations such as Apple, Facebook and Google are hitting record highs.California housing prices from La Jolla to Berkeley along the Pacific Coast can top $1,000 a square foot.It seems as if all of China is willing to pay premium prices to get their children degreed at Caltech, Berkeley, Stanford, UCLA or USC.Yet California — after raising its top income tax rate to 13.3 percent and receiving record revenues — is still facing a budget deficit of more than $1 billion. There is a much more foreboding state crisis of unfunded liabilities and pension obligations of nearly $1 trillion.
Soon, new gas tax hikes, on top of green mandates, might make California gas the most expensive in the nation, despite the state’s huge reserves of untapped oil.Where does the money go, given that the state’s schools and infrastructure rank among America’s worst in national surveys?Illegal immigration over the last 30 years, the exodus of millions of middle-class Californians, and huge wealth concentrated in the L.A. basin and Silicon Valley have turned the state into a medieval manor of knights and peasants, with ever fewer in between.
The strapped middle class continues to flee bad schools, high taxes, rampant crime and poor state services. About one-third of the nation’s welfare recipients reside in California. Approximately one-fifth of the state lives below the poverty line. More than a quarter of Californians were not born in the United States.(Excerpt) Read more at townhall.com …
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