California taxin'

Albert Pujols, St. Louis to Anaheim, $240MILLION, 10 years
California State Income Tax bill  = $32MILLION

Dwight Howard, Orlando to Los Angeles, $20MILLION, 1 year
California State Income Tax Bill  = $2.7MILLION

Zach Greinke, Texas to Los Angeles, $147MILLION, 6 years 

California State Income Tax Bill  = $19.6MILLION

Josh Hamilton, Texas to Anaheim, $125MILLION, 5 years
California State Income Tax Bill  = $16.7MILLION 

Governor of California Jerry Brown, the tax man cometh
State of California Tax Revenue from four people above = $71MILLION

Not so long ago on a planet far different from the one today, the thought of raising taxes was a death sentence for any politician, particularly, one running for president.

The fear of a tax increase was so palpable to the electorate in 1988,  Republican nominee for president, George H.W. Bush #41, uttered these famous words at the Republican National Convention to quell the nation's fears, "Read my lips, no new taxes."  Bush won that election on that promise.  However in two years, he broke his own pledge, raised taxes to combat the deficit and was publicly pilloried coast to coast.

Enter Bill Clinton in 1992, the Democratic nominee for president.  Bush lost his re-election because of what Clinton phrased as Bush's "untrustworthiness" for breaking his own promise of no new taxes and Bush was booted out of office with some help from third party diluter Ross Perot.

Fast forward to today.  Oh, how the planet has changed.

In the last election cycle, President Barack Obama and California Governor Jerry Brown campaigned on what used to be political suicide, raising taxes.  Both Obama and Brown flatly stated that new higher taxes were needed for the governments to function and for the entitlements to continue period.  Against a painful backdrop of an anemic economy, they both won on that blanket tax dictum with no mention of specific spending cuts.

Obama won a second term and Brown won with the passing of his new revenue pet Proposition 30 insuring higher taxes.  So in a span of 20 years, the thought of raising taxes on the populace which was an anathema to a center right American citizenry changed to a righteous hip center left culture of today that paying "our fair share is the right thing to do."

Specifically, on the state level, California's money cash flow woes are very serious due to generational political incompetence and malfeasance in Sacramento. Shockingly,  California's debt is $400BILLION.  California's scale of debt is similar to Greece debt size.  Greece is done.  California is on the ropes. How to keep California breathing? "Raise taxes", says Jerry.  And Jerry implied, 'if you don't raise taxes, California will not have enough money in its coffers to do most anything for the public good.' Terrified voters bought the message.

In California, the new tax increase retroactive to 2012 are stunningly onerous. The newly passed Prop 30 increases state taxes on the wealthy by 30% to 13.3% from 10.3%.  State sales tax and local taxes will rise to 10% plus or minus for all citizens.  California now has the dubious distinction of being the most heavily taxed state in the country surpassing the old standard bearer of statehood fiscal irresponsibility, New York.

Astonishingly, the recent megastar signing events in California have given much needed oxygen to Jerry and his Sacramento spenders and looters.  The four major athletes pictured above have all signed humungous contracts to move from tax friendly states to the most hostile tax grabbing state in the country.  These four men and their agents are either the most clueless businessmen on earth or they like the geography and weather of SoCal so much that paying Jerry a major surcharge is "the right thing to do" to call Cali home.  Or, maybe they just found out about Cali's exorbitant taxes and cost of living and that's why none of them are smiling.  Oops.

Needless to say with this sudden infusion of revenue,  Jerry is in full downward dog repose...with a wide Mr. Burns grin. Christmas came early.

In closing, let me get this right.  Josh Hamilton just left Texas that has zero state income tax for tax crazy California. He will gross $25MILLION his first year of a five year deal with the Angels. His tax bill in 2013 will be 40% Federal, 3.8% Obamacare surcharge and 13.3 % State of California income tax on that $25MIL.  That equates to a total tax bill for his first year in sunny SoCal of $14.275MILLION.  Josh nets $10.725MIL.  Not bad in a lousy economy.

Sacramento and DC thanks Mr Moreno, 'the feeling crummy of oneself' spendthrift owner of the Angels, for helping "level the playing field" (no pun intended).

Now that raising taxes are cool and in, what's next? Eating brussel sprouts enhances one's sex life.  No way!