Reich: A Tale of Three States: California, Kansas, and Florida [View all]

[eridani]

http://www.dailykos.com/story/2015/03/15/1371066/-A-Tale-of-Three-States-California-Kansas-and-Florida

Robert Reich recently pointed out that if you listen to rightwing groups like the Tax Foundation, you would think California is a horrible place for business. These groups rank it in the top 10 worst due to "high cost" and "burdensome environmental regulations". However, these same groups rank Sam Brownback's Kansas as one of the best.

Here's the problem with that:

Kansas is collapsing. In four short years, since the tea party takeover, Kansas has had three credit downgrades along with a billion-dollar budget deficit. They are struggling to fund basic services and their education system is hanging on by a thread, with cutbacks making it almost dead last in teacher quality, pay, student spending and pupil-teacher ratio. It's so bad that REPUBLICAN state Sen. Wint Winter Jr. said Brownback's tax cuts have been a "train wreck".

Yet while the Sunflower state is falling apart, the Eureka State is CRUSHING it.

By any metric you use, California has become the best state in the union for investors. A great Democratic governor (Jerry Brown) and a Democratic-led legislature turned California around in four short years from a 27 billion dollar deficit disaster into a surplus and, according to Bloomberg, an absolute mecca for corporations! California companies in the S&P 500 have delivered returns of 134 percent! (No other state comes close.) These same companies outperformed the S&P 500 by a margin of 23%; and CA tech company sales account for 52% of all the tech sales in America.

So how can California have some of the highest business taxes and regulations in America, and yet be the most successful? The answer is simple. California invested in itself!