The tel# for the Alabama Development Office is Toll Free 800 248 0033 . Alabama is a Right to Work state and we are open for business !! Find out why world class companies are happy here : Join Mercedes Honda and Hyundai .Or you could stay in Caly and watch it slide into the ocean like the mystics and statistics say it will . Your choice , cowboy .

Democrats prefer the poor to remain so. They are much easier to control. When the wealthy depend on favors from the state to remain wealthy, then they too are much easier to control. It's those dang independent-minded people in between that mess things up, with just enough money, education and drive to push back.

Another good reason to not operate a business in CA.

Sorry for the poor proofreading.

When you subsidize something you get more of what you subsidize. When you tax something you get less of what you taxes - and ironically, less taxes. Democrats have taken this lesson to heart in California - and elsewhere. The proposed law described in this article is an example of Democratic ingenuity - these people simply never stop.

However, pointing out that proposals such as the one described by the article will actually harm business, and make conditions worse overall, is not a disincentive, rather it is the reason the law to be adopted - it's what the law is intended to do. California Democrats - heck all Democratic leaders - fully understand that they do well among the poor, the very rich (for the most part), and government workers. Therefore, they pass laws designed to subsidize the poor, and subsidize government, getting more of both. As for the very rich, they are on their own, and always seem to manage.

Once you comprehend that Democrats have no intention of doing anything that would truly enable the poor (or the poorer) to achieve wealth, thereby jeopardizing the continued support for the Democratic party everything that Democrats do makes sense. Democratic policies are carefully tailored to appear to help the poor, but long, LONG experience shows that these policies do nothing but ensure that the poor remain poor. That's the point!

It's all very simple, once you get it.

How did we get from "Regulating Interstate Commerce" to "stopping all commerce"?
That's what government no does.
We face no Goths or Vandals, just our own predatory governments.
There is no hope. Or change.

I am not familiar with this type of taxation. Most states appear to have franchise taxes, which specifically address the difference between out of state and in state corporate tax rates, as a method of gaming a high tax state out of revenue for business legitimately conducted in state. In other words, incorporate in Nevada when you do all your business in California.

California appears to now have a compromise type tax that creates incentives to hire workers in California and own real property there as well. All this complexity can be eliminated if all state corporate and franchise taxes were eliminated, and replaced with a uniform sales tax or VAT that allows each state to earn revenue on its share of business. Federal assistance and a restructuring of property taxes, state personal income taxes and taxes on pensions and passive income could solve any inequities between the states. The system will be very simple, and be an excuse to reform the federal tax system and the unintelligible system of federal aid to the states which paper over the bad business environment that California and other states have created.

The chart suggested by Richard Rider is so good that I've made it into a graphic and provided some additional information.

CHART: California's Community College Undergraduate Tuition and Required Fees for Residents, Compared to 
49 Other States (2009-2010)
http://www.twitpic.com/9ka6nc/full

Reply to Richard Rider: Great info!

The link you provided on community college tuition no longer works. Here's an updated link.
http://www.hecb.wa.gov/sites/default/files/TuitionandFees2009-10Report-Final.pdf

Never trust a hungry Legislature, indeed--especially one as incompetent and crony-owned as the California Legislature. The coming onslaught is staggering.

CHART: California Governor Jerry Brown's Proposed Tax Hikes Compared to the MAXIMUM Tax Rate in 49 Other States
http://www.twitpic.com/9g2pka/full

CHART: California Governor Jerry Brown's Proposed State Sales Tax Hikes Compared to State Sales Tax in 49 Other States
http://www.twitpic.com/9gfz3z/full

See a pattern yet?

Like voters everywhere, Californians love getting something for nothing. Our state's college education system is reluctant to charge students much for attending college. Then they get too little revenue and too many applicants. Consider:

California, a destitute state, still gives away college education at fire sale prices. Our community college tuition is the lowest in the nation. How low? Nationwide, the average community college tuition is about three times higher than California CC’s. http://www.hecb.wa.gov/research/issues/documents/TuitionandFees2009-10Report-Final.pdf Chart 5 on page 8

This ridiculously low tuition devalues education to students – resulting in a 30+% drop rate for class completion. In addition, 2/3 of California CC students pay no net tuition at all – either filling out a simple unverified “hardship” form that exempts them from any tuition payment, or receiving grants and tax credits for their full tuition. http://tinyurl.com/ygqz9ls

On top of that, California offers thousands of absolutely free adult continuing education classes – a sop to the upper middle class. In San Diego, over 1,400 classes for everything from baking pastries to ballroom dancing are offered totally at taxpayer expense. http://www.sdce.edu

Protests about increased UC student fees too often ignore one crucial point -- all poor and many middle class students don't pay the “fees” (our state’s euphemism for tuition). There are no fees for California families with under $80K income. Moreover, Pell Grants and federal tuition tax credits covered the total 2009-10 fee increases for nearly 3/4 of all undergraduates with household incomes below $180K.
http://www.universityofcalifornia.edu/blueandgold/ and http://www.universityofcalifornia.edu/news/article/22415