Green Fizzle

The much-lauded California program that jacked up taxes on out-of-state corporations and devoted half the proceeds to “green” projects has apparently fallen short of expecations

90% short.  At least, as far as they can tell; the program isn’t actually releasing details, which – let’s be honest – means they actually did worse than 10% of projections.

Three years after California voters passed a ballot measure raise taxes on corporations and generate clean energy jobs by funding energy-efficiency projects in schools, barely one-tenth of the promised jobs have been created, and the state has no comprehensive list to show how much work has been done or how much energy has been saved.

Money is trickling in at a slower-than-anticipated rate, and more than half of the $297 million given to schools so far has gone to consultants and energy auditors. The board created to oversee the project and submit annual progress reports to the Legislature has never met, according to a review by The Associated Press.

In other words, the law didn’t repeal human behavior – corporations curtailed California operations to avoid the tax – and, most damningly, the whole thing turned into a wealth-transfer program, moving money from the productive class to the rent-seeking parasites.

5 thoughts on “Green Fizzle

  1. I used to work for a company that had a fairly extensive presence in California. Its amazing how anti-business the state is. Just to name a few things….high taxes, heavy affirmative action laws (we had to report to various gov’t entities the skin hues of our employees), brutal environmental regulations, a different set of accounting books had to be kept just for California compliance, and just random issues would pop up.
    This company had store fronts so it was worth while being there anyway due to the high population and lots of rich people. If you run any other kind of business, one that doesn’t rely on walk in customers, I don’t see anyone doing business in that state.

  2. A distributor of my companies products moved his whole operation from Ontario, CA to Primm, NV. Primm is the first exit off Interstate 15 (the 15) in Nevada running from LA to Vegas. His reasoning was between regulation and taxes he would save enough to pay back his relocation costs in less than a year. I wondered what his Southern California customers thought of this and he told me that since he was already shipping 80% via common carrier anyway, his few walk in customers have either gone elsewhere or they wait a day to save on the near 10% sales tax imposed by the state.
    Since he is now located out of state he no longer is required to act as a tax collecting agent and the customer is supposed to pay the sales tax directly to the state. But just like in Soviet Union, compliance is, how you say, spotty.

  3. So Minneapolis is hiring two people to implement and enforce “fair scheduling, wage theft and sick leave” of private employers. Like the human rights overseer in St Paul who banned stuffed rabbits in City Hall and dago sandwiches in a privately run business, imagine what these gov’t thugs will come up with the show how valuable they are to the city.
    High margin, high cash flow business will probably be fine. But if you are a small startup with slim profits, would you want to take a risk by doing business in Minneapolis?

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