Unfortunately, cost overruns on government projects are hardly a new phenomenon. According to a CATO Institute paper, as far back as 1836, a congressional Ways and Means Committee examination found that 25 out of 25 federal projects suffered a cost overrun. The paper included other interesting items such as the construction of the Erie Canal […]
California’s corporate tax base may increase by up to 12 percent as a result of federal tax reform legislation, according to a study recently released by the State Tax Research Center. This means that revenues from California’s corporate income tax could increase by as much as $1.3 billion – without any action by state lawmakers […]
A survey of business executives in highly sought after industries such as clean tech and research & development conclude that California has a number of problems that prevent businesses from locating or expanding in the state. The Pacific Research Institute survey discovered that housing and real estate costs, a poor quality education system, and taxes […]
In June San Francisco’s school board wants voters to approve a new “parcel tax” of $298 per parcel of real property. They claim the money — $50 million per year — is needed to provide teachers with living wages. That’s a worthy objective but it’s not the real reason behind the proposed tax. The real reason is buried deep […]
California’s elected officials must be in La La Land when they state that California’s economy is thriving in large part because of its emphasis on enacting sweeping environmental legislation. California’s economy, like the rest of the nation, has been booming ever since the recession, but California is ranking up where the state is not proud […]
For those who are frustrated because they can’t buy their first house and start climbing the homeownership ladder, this housing shortage doesn’t fall under an academic title such as “market imbalance.” It isn’t being shrugged off as some temporary oddity where transactions aren’t working out now but just be patient, everything will be fine later. […]
Californians eagerly await Congressional implementation of President Trump’s recently released infrastructure proposal, a $1.5 trillion plan to rebuild our country’s neglected bridges, dams, schools, highways, streets and public transit. Even with funding, a lack of skilled construction workers presents a serious barrier to success. California’s lack of investment in career and technical education programs has […]
For the business community, the difficulties of the Private Attorneys General Act (PAGA) are similar to what business faced under the burden of workers compensation costs over a decade ago. Small businesses particularly had to cope with workers comp costs that stood at twice the national average threatening the viability of many establishments. While workers […]
The money that’s paid to the state for these permits looks a lot like a tax. But a state appeals court ruled that it’s not a tax, because it’s not compulsory. Any business that doesn’t want to pay it, the court reasoned, could simply go out of business. Now you know why other states don’t […]
To see how bad decisions can be, look at California, a state which once led in economically critical infrastructure but now striving to present the worst possible example. Over the past two decades, California has become among the states least committed to new infrastructure, despite absurdly high tax levels. And when the spigot has been […]
Recently, a prominent periodical hailed last year’s housing legislation as a marvelous thing – that with it will soon come the end of California’s housing crisis. Similar statements have been made in the few months following the Governor’s signature – including by the Governor himself – on the passage of several new “housing” bills. “In […]
In effect, SB 1014 would force low income drivers into an unwinnable scenario in which they would be compelled to make a choice between plowing themselves into debt by purchasing a new vehicle, spending more than they otherwise would on a used conventional vehicle to purchase a used ZEV that effectively limits their ability to […]
In tax conscience California, a split in attitude: the granddaddy of taxpayer protections looks safe while a threatened new gas tax increase might feel the same way according to the latest Public Policy Institute of California (PPIC) poll. Proposition 13, the nearly 40 year-old taxpayer shield, is being threatened with a proposal to split property […]
If you’re still steaming about L.A.’s new trash system – which so far has resulted in poorer service and much higher costs – just wait. The state is hitting businesses with a different plan next year: A new recycling mandate that calls on businesses to sort food waste and landscape trimmings from the rest of […]
Everyone has heard about pension costs but few have heard about the other retirement cost that’s burdening California governments and schools. “OPEB” — “Other Post-Employment Benefits” — are a form of deferred compensation, just like pensions. The principal OPEB benefit is a promise to cover post-retirement health costs. Because government employees in California may retire […]