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The PJ Tatler

by
Bridget Johnson

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August 27, 2013 - 6:35 am

Sen. Barbara Boxer (D-Calif.) lauded her state’s practice of taxing the wealthier as putting California on the track to financial success — even though L.A.’s mayor declared a state of emergency from overtaxed and overregulated motion picture companies leaving Hollywood, taking jobs with them.

“It’s very clear Jerry Brown had a vision. He shared with the people when run as did President Obama. The difference is that Jerry has a very strong legislature, democrats run the place. They run all three branches with strong majorities. And we know because we look back when Bill Clinton was the president working with us, we got that budget balanced,” Boxer said on MSNBC.

She lambasted those who think “that Democrats don’t know how to balance budgets when we’re the ones who do.”

“Because we do ask everyone to pay their fair share and we are tough on spending that doesn’t make sense, and Jerry has done an outstanding job, and so has the legislature.”

The senator said “there is one word that I think we always have to focus on and that’s fairness.”

“Everyone has to do their part, and clearly, I mean I’ve spoken to people in California who earn a lot, who were very anxious to help the country and help their state. And I think here in California we’ve proven the point you know, a rise in tide lifts all boats,” Boxer continued, advocating a hike in the federal minimum wage to “about $10.”

Yesterday, though, Variety reported that L.A. Mayor Eric Garcetti “needs to convince skeptical state pols to combat the lure of rich tax incentives from outside California.”

“I am starting to see people who have never made a feature film in Los Angeles,” Chris Baugh, location manager for Oscar winner “Argo,” which actually shot in L.A., told the small group outside a soundstage. “In fact, they are afraid to. They are concerned that it is too expensive and too difficult.”

…The California Film Commission recently released a sobering report concluding that the state “continues to experience a pronounced erosion of this signature industry.” Although the state’s incentive program has recaptured lower-budgeted features, TV movies and basic cable dramas, California is losing out big on network TV dramas and feature films. Many local businesses that support production have closed or been forced to lay off workers, and the trade unions report high levels of unemployment among their California members, according to the study.

Those who make over $1 million in California face a combined federal-state tax hit for 51.9 percent. Moving from California to Florida saves them 13.3 percent.

Bridget Johnson is a career journalist whose news articles and opinion columns have run in dozens of news outlets across the globe. Bridget first came to Washington to be online editor at The Hill, where she wrote The World from The Hill column on foreign policy. Previously she was an opinion writer and editorial board member at the Rocky Mountain News and nation/world news columnist at the Los Angeles Daily News. She has contributed to USA Today, The Wall Street Journal, National Review Online, Politico and more, and has myriad television and radio credits as a commentator. Bridget is Washington Editor for PJ Media.

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Top Rated Comments   
'Cause nothing says "pay your fair share" like arbitrarily demanding retroactive taxes.
47 weeks ago
47 weeks ago Link To Comment
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All Comments   (13)
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“It’s very clear Jerry Brown had a vision. He shared with the people when run as did President Obama. The difference is that Jerry has a very strong legislature, democrats run the place. They run all three branches with strong majorities. And we know because we look back when Bill Clinton was the president working with us, we got that budget balanced,” Boxer said on MSNBC."

What a crock, Republicans controlled the House and Senate for the Clinton second term and the budget was the best it ever had been.
47 weeks ago
47 weeks ago Link To Comment
I think here in California we’ve proven the point you know, a rise in tide lifts all boats

Oh, yes. In an average week since the beginning of 2000, California's tax rates, economy, government, and people have created a tide that has lifted boats containing 1,500 people in an average week clear out of California. I know. I'm one of them. I've been in Iowa for nearly three and half years and I'm not returning to California under any foreseeable set of circumstances.
47 weeks ago
47 weeks ago Link To Comment
Prior to Prop 30 passing, CA already had the 2nd worst state income tax rate in the nation. Our 9.3% tax bracket started at $48,029 for people filing as individuals. 10.3% starting at $1 million.

Now our retroactive (to 1/1/2012) “millionaires’ tax” rate is 13.3% – including capital gains. Increased taxes now start at $250K. Our total capital gains tax is 2nd highest in the world.

CA now has by far the nation’s highest state income tax rate. We are 21% higher than the 2nd highest state (Hawaii), 34% higher than the 3rd highest state (Oregon), and a heck of a lot higher than all the rest – including 7 states with zero state income tax.

CA is so bad, we also have the 2nd highest state income tax bracket. AND the 3rd. Plus the 5th and 7th.
http://taxfoundation.org/sites/taxfoundation.org/files/docs/ff2012.pdf Tables #11 & 13
and
http://www.twitpic.com/9g2pka/full
and
http://tinyurl.com/CA-2nd-CG
47 weeks ago
47 weeks ago Link To Comment
Sen. Barbara Boxer (D-Calif.) lauded her state’s practice of taxing the wealthier as putting California on the track to financial success — even though L.A.’s mayor declared a state of emergency from overtaxed and overregulated motion picture companies leaving Hollywood, taking jobs with them.

The stupid praising the stupid.
47 weeks ago
47 weeks ago Link To Comment
Proving, once again, Barbara Boxer is nothing but a wind bag. I am sure all the big earners in California are anxious to give the government of California even more money to waste. Those big earners, that is, who have not already moved or are planning to move.
47 weeks ago
47 weeks ago Link To Comment
Not 13.3 percent... 13.3 percentage points of taxable wages.

That's big a difference.

In LA one retains 48.1% whereas in Florida one retains 61.4%.

Hollywood wages trigger the top tax rates, for sure.

This is compounded by LA's high cost structure up and down the line: rents , travel time, union work rules... (the last are completely insane)

47 weeks ago
47 weeks ago Link To Comment
Lebron James chose Florida over New York State when he left Cleveland primarily because of taxes.

Even tens of millions of dollars and the media frenzy of New York City were not enough to tip the scales.

Like the NBA, Hollywood is driven by star power.

Eventually, Florida will taken them all away.

47 weeks ago
47 weeks ago Link To Comment
Phil Mickelson's house in CA is for sale.
47 weeks ago
47 weeks ago Link To Comment
Studios are experts in one thing: making money. They play one state off another for tax incentives, and even when CA ponies up, the studios move to right-to-work states because Sag-Aftra and trade unions' work rules and pay scales. I suspect the pols realize this but reap campaign donations for a time.

And finally that's why Dreamworks is moving animation to China: even cheaper labor.

I fully expect a CSI Shanghai by next year.
47 weeks ago
47 weeks ago Link To Comment
So, while the movie "Argo" was shot in CA, many other producers are using Argo's signature line and telling CA to "Argo ---- yourself".....
47 weeks ago
47 weeks ago Link To Comment
'Cause nothing says "pay your fair share" like arbitrarily demanding retroactive taxes.
47 weeks ago
47 weeks ago Link To Comment
California politicians assume that it’s the tax INCENTIVES that moved California film producers to other states — but they give too little “credit” to the adverse tax, regulatory, housing and litigation climate that is California.

IMHO, Hollywood producers will be influenced by state and local incentives when picking WHICH state to move TO, but such subsidies are not enough to make them leave CA. California politicians have provided that negative motivation.

More and more, our big earners are going to realize that, by working and living outside CA, they avoid the onerous 13.3% CA state income tax. This out-migration of the “Tinsel Town” film industry will continue — and likely will accelerate. CA tax incentives (at taxpayer expense) will at best slow the rate of departure.
48 weeks ago
48 weeks ago Link To Comment
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