California has high personal and corporate income taxes as well as high taxes on individual and corporate capital gains. And the list goes on. According to the SBE Council, California has the highest gas and diesel taxes, an additional tax for S-corporations, an added estate tax, poor private property protections, a large number of health insurance mandates and high workers' compensation costs.
California is suffering a $28 billion fiscal deficit and has the worst credit rating among the 50 states, according to new Gov. Jerry Brown, a Democrat who also led the state in the 1970s and early '80s. The Golden State has one of the highest unemployment rates in the country -- 12.4% as of November, according to the Department of Labor. Thousands of Californians face foreclosure on their homes as a result of the housing bust.
Brown proposes a $12.5 billion cut to California's state budget to close a large deficit and is reconsidering various tax credits, including the small-business-focused Enterprise Zone Hiring Credit, as he takes on a multiyear effort to shore up the state budget.The credit was one of the best jobs credit in the entire country, but cost the state much-needed revenue, True Partner's Sori says. Still, the state prides itself on supporting venture capital and the entrepreneurial spirit, especially in technology. It's that home to Apple of which Morrissey spoke, as well as to countless other high-tech firms packed into its Silicon Valley.