Dear California,
I love so many things about you. The sunny weather of Los Angeles. The beautiful lights of San Francisco. The seaside breeze of San Diego. The quaint charm of Santa Barbara. I love your food and people and even your moniker, the Golden State. And I think Arnold has a legitimate claim to the title “America’s Toughest Governor.”
But… as a denizen of the Golden State, might I just offer a couple suggestions for improvement?
First, what is up with your taxes? 9.3% state income tax, then up to a 8%+ sales tax? Sure, you’ve got low property taxes, but let’s be serious. A low property tax won’t help if I can’t even afford the property.**
Can’t you offer some relief to us working folks? How about a state tax deduction for 529 Plans? Lots of states do it already… isn’t it time that CA joined in the fun? You’ve got one of the preeminent public university systems in the UC, but let’s face it. Even for a public school, UC’s aren’t getting any cheaper.
**Where’s this impeding real estate bust that I’ve been reading about? Why is the 2-bedroom condo next to me still selling for $450,000 (down from $475,000!) even with a “motivated seller”?
Sincerely,
Loyal (but over-taxed) Californian
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I’m 100% with you on the housing.
All I hear is “housing market collapsing” and “prices plummeting”, but we still can’t afford even a starter home or a condo on two tech salaries.
Call me when a condo is in the $200K range.
Please add, from me: And i just bought a computer with a special California fee of $12 for recycling. It i great that we are “green” but really, was that necessary? Really?
Housing prices have indeed come down, but are still RIDICULOUS. Maybe property taxes should go up just a little to ease the tax burden on the rest of us who can’t get in? Just a wee bit?
I do admire the new rule that bans talking on cell phones in cars without a headset. But I can’t help but think of Kindergarten Cop when I think of Arnold…
And why are the DMVs open ONE Saturday a month? Seriously??? You wonder why I didn’t get my car registered within 20 days! (oh wait, you don’t, you’ll gladly collect 30 in fees for that.)
You’re right with the housing… The price has fallen though not by much, but there’s still a long time for the price to fall (next 1-2 years perhaps) The only problem, I think, is that prices in Bay Area probably won’t drop by THAT much, except in a few selected areas (and probably not worth considering). It’s just a guess of course.
Housing aside, I just read in an article in Mercury News today that Arnold is now opened with the notion of hiking or creating new tax. Hmmmm…
8% sales tax sounds like a dream. Not get outdone, Chicago recently raised theirs to 10%.
My local and Texas sales tax of 8.25% infuriates me. I can’t even imagine having a massive income tax on top of that. Thing is, I have no idea why California needs so much more cash than Texas. Where does it go?
I hear ya! I live in San Diego and the home prices here are still out of control . . .
As newbie Californian, I must say the expense was a shock when i first moved here…I sympathize with you, and I’m not sure where you live in Cali, but, as you know, some places are worse than others. I live in Santa Barbara, and I’m still reeling. :/
and to the previous response…California has over 36 million people living in the state, a good number more than Texas, so higher taxes are to be expected. Now, if only we didn’t have to cut $4 billion in education expenses…
ps. love the blog. You save like a champ.
Don’t live in CA but am shocked that you can find a two bedroom condo for 450K! Is this is SFO or the bay area? That would mean prices there have dropped lower than Seattle – still waiting for prices to drop here.
Just wanted to let you know that your tax isn’t that bad. Where I live (New Zealand) income tax starts at 19.5 % at $30,000 per year (or close to that) it goes to 33% and for $60000 and above it is 39%.
Also our sales tax is 12.5 % and some thing (such as petrol which is $1.75-$1.80) is taxed more – so 60% of what we pay for petrol is taxes.
Oh and when you own a house you also pay rates (a regional tax) which is around $3000 a year for a mid size property.
And a small family home cozts around 10x the average wage.