My point is that CA also has pension problems as most states in the US. CA has ALREADY raised taxes for medicare for the wealthy and some cities (SF comes to mind) has a “special tax” just to pay for healthcare for city workers I think.
There is also an added state income tax in CA where you pay an extra 3% or something if income is > 250k I think. Someone here rich can post the rule since it doesn’t affect poor me…
I am saying if Greece leaves the Euro, they will be now FORCED to do these things since they simply don’t bring in enough revenue to pay out current liabilities. Unfortunately for them and fortunately for CA, CA has lots of “rich” upper class worker bees to pay (rich companies don’t pay any tax since most offshore it all and have lower tax rates than you or me) and Greece seems to have a history of tax evaders in general. I’m sure the GDP of CA is massive compared to Greece (8th in the whole world) so CA can do lots of things to deal with misc “problems” here vs. Greece.
Also, there isn’t a massive exodus of people leaving CA (see property prices in SF or LA?) even with these wealth income taxes so CA seems to be managing their financial issues fine compared to Greece. Not to mention people actually voted for the tax increase.
I wonder how Vallejo is doing or other bankrupt cities. If they implemented a special tax in certain cities, it seems easier to just shop somewhere else or leave (so if Greece gives you painful austerity or taxes or spending cuts, why not just leave?).[/quote]
I don’t understand why Greek just not leave either. I mean Greek shall book the first class flight out of there asap and have countries they want to immigrate to issue them visas immediately.
And what are those Californians doing? I mean they shall just fire sale their real estates holdings since it will become Greek in the near future. I am really really confused.
