Why California is broke?
California in United States was liked by everyone in America, and people prefer to dream about living in this beautiful place during 1960s and 70s. The place has golden sunshine and sandy beaches, which are enjoyed by all the inhabitants. The scenario has changed a lot now, and many people are thinking of leaving the state for some good purpose. The reason for this was reported to be its shambled economy. California is observed as the 8th highest economy in the world. California State has the income tax rate of 9.5 percent which is the 3rd highest state in this regard. It has highest sales tax rate than other states at 8.25 percent. California is ranked 13th in collecting property taxes. The state is ranked four in levying taxation at 9.55 percent and state also imposes highest gasoline tax. This state also has one of the highest vehicle license car taxes which are 1.15 percent in a year. The above facts and many more show the state of California to be having high economy. But, recently it was reported that its economy broke.
There are some visible reasons that can be considered as stimulants for diminishing the state economy. About 20 percent of people in California enjoy the aid given for public purpose. The population of California is around 12 percent of the entire population. But, the funds allotted for temporary assistance for needy familiesÃ¢â‚¬ was spent as high as 36 percent of the national money spent for this purpose. The estimation of this amount spent for Californians was calculated to be same as 8 other states taken together. The guards at the prison in California are paid higher than in other states. It was found that the guards at prison in California were paid 40 percent more than the highest paid guards in other ten states. The teachers in California were paid high compared to all others in the entire country. The bond rating was cut down in California. The lawsuit climate, 2008 followed by this state made it to be ranked 44th worst. The community college education is given at very low prices over here. It provides Adult education classes that are free of cost. The electricity price in the residences is also higher. The creation or building of solar panels in this state is very expensive. Due to all these reasons people in California are finding it difficult to survive.