by Lee Stranahan
I don’t agree broadly with Bob’s sabotage theory but since I’ve been a resident of the late great golden state for most of the last 25 years, I know he’s totally wrong about the Republicans in California.
They do not have any plan to sabotage the economy for 2010 to make Obama look bad. They don’t think that big or that nationally. They want tax cuts because that is their religion. It’s all they know. If it were as simple as sabotage, you might be able to talk them out of it.
And while it’s easy to pretend that the ‘lower taxes’ mantra is simply crazy, here’s the truth – states compete for business and for residents. Taxes are a factor. If a state has no state income tax, some people will move there. This is one reason Nevada has gained a lot of former California residents and many of them are entrepreneurs. Same with corporate taxes or other financial incentives.
I’m in the process right now of packing up my apartment and leaving California for New Mexico. Lower overall prices on rent are one reason and the state film incentives are another. I know some entertainment companies are doing the same thing. Those state film incentives are type of tax cut, by the way – 25% back.
So tax cuts DO matter. It’s not wise to be blinded by our own ideology to think otherwise. They can, actually, create jobs or cost them in a state. The Republicans seem to be unable to strike an effective balance because it’s the only tool they have.


