California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

According to the latest edition of Rich States, Poor States, the Golden State remains
in the bottom 5 (ranked 47th,down from 46th in 2010 and 43rd in 2009) in the nation.
The report by the Washington D.C. based non-profit group the American Legislative
Exchange Council, ALEC.  It is the fourth edition of Rich States, Poor States:
ALEC-Laffer State Economic Competitiveness Index.  It shows how many states responded
to the economic crisis with higher taxes, new spending, and more debt. Instead of
continuing down this road to a financial meltdown, the authors outline the steps
states can take to bring about economic recovery.

The report is co-authored by former Californian and economic advisor to president
Reagan, Art Laffer and his co-authors, Stephen Moore, senior economics writer at The
Wall Street Journal, and Jonathan Williams, director of ALEC’s Tax and Fiscal Policy
Task Force. Together they analyzed how economic competitiveness drives income,
population, and job growth in the states. They found that states with a high and
rising tax burden are more likely to drive away individuals and business, while
those with lower and falling tax burdens are more likely to attract businesses and
create jobs.

For California, this annual report has taken its toll.  This year the state gets beat
up by the passage of AB 32.  Last year it was its high personal income tax progressivity,
continued legislative tax changes and being a right to work state.

I am Tim Johnson and this has been the California Business Minute.

For further information go to http://www.alec.org/AM/pdf/tax/11rsps/RSPS_4thEdition1.pdf