Although CA does pay in more federal taxes than what they receive, they are not in the lead in this, they would be eighth. They are still a welfare state as measured per capita. regardless of how much you would like to dismiss this. And the US would not collapse without CA. All federal funds are not for welfare
This does not make much sense. Your statement California is a welfare state as measured per capita totally disregards the fact that California gives the Federal government far, far more in money than they get back. The number of people on welfare has nothing to do with this. Most of the large states have a greater percentage of people on welfare. And you're claim that California is only eighth worst in regards to the percentage they get back is nonsense. Four of the states that get back less are New Hampshire, Delaware, Nevada and Connecticutt. Three have small populations and Connecticut is a small state but very wealthy.
In actual dollars California loses the most money because of its very low percentage of money returned and the huge amount of money it pays in due to its large numbers of people and high income per capita.
Other States are NOT why CA is neck deep in debt. They just try and blame it on everyone else. California is its own worst enemy, Period. California need to stop living in denial and face the facts.
Wrong. California would not be in debt if it got back merely one dollar for every dollar they paid to the feds. How is that their fault?
California does have to take some blame since they listened to the Republicans and passed Proposition 13 which severly hindered Californias ability to raise revenue. Plus, California, being a border state, also has the same problem the other border states have with illegal immigrants, mulitplied by Californias large population.
But the state has had an insatiable appetite for debt in recent years. In the last decade, the debt per resident has tripled, to $2,362, according to the credit-rating agency Moody's Investors Service.
California is in the same situation as many other states. Due to Republican mismanagement of the economy many states have had to drastically increase debt the last few years. Californias numbers are just bigger since its the second biggest state.
Voters have approved borrowing in the last 10 years for such causes as stem-cell research ($3 billion), high-speed rail ($10 billion), and parks, water and the environment ($14 billion). They even took on $15 billion in debt to paper over a deficit that Gov. Arnold Schwarzenegger said would never reemerge — something economists have scolded the state for doing.
Yes, that's what they did. California is attempting to keep the state moving forward. Other states have basically decided to stop doing things like infrastructure, etc and will pay for that enormously in the long run. Businesses that don't reinvest in themselves eventually go out of business. California is taking the steps necessary to keep up their infrastructure so, for example, unlike New Jersey, ten years from now the state will find its transportation adequate unlike New Jersey which just ensured economic stagnation when their transportation infrastructure is overwhelmed in the next few years.
Because of its rock-bottom credit rating, California pays a premium for its loans. Taxpayers must fork over roughly $2 for every $1 borrowed — about 20% more than top-rated states, said Matt Fabian, an analyst at Municipal Market Advisors, a bond research firm.
Yeah, if only California wasn't in a mess due in a large part to the economic collapse caused by things like the Republican Great Recession and the misguided attempt to "privatize" electrical power generation. Not to mention that pesky Proposition 13. Oh, and the hundreds of billions that they pay to the feds to support the failed welfare queen states.