It Never Quits -- At Least Not In California

I was just out in California for a couple weeks to visit family and friends, and to grill Omaha Steaks for same.

I spent a fair amount of time in coffee shops, early in the mornings, before folks got up, and heard a common complaint: how challenging it was to do business in California. (And a lot of stories about $4.50 gasoline.) The challenges with business in California: the bureaucracy. Permits for everything. And $$$ for permits.

And now Jerry Brown is proposing another increase in payroll taxes on businesses. The LA Times is reporting:

With one of the nation's highest unemployment rates for several years, the state has had to borrow money from the feds to keep the program going. Now that the jobless rate has fallen to 8.5%, Brown would like to start paying down a $10-billion debt.

His administration is circulating a draft bill that would put the system on an even keel by raising payroll taxes paid by employers. The goal is to win approval before the Legislature finishes work for the year Sept. 13.

People close to the process say that Morgenstern is proposing an increase in the amount of wages subject to unemployment insurance taxes from the first $7,000 of annual pay to $9,500 and eventually $12,000. The goal is to retire the federal debt by 2016 and create an $11-billion surplus by 2021.

Businesses might be willing to pay off the $10-billion debt, but increasing the payroll tax to the point it results in a surplus of $11 billion in just a few years after that? Hmmm? And just think: these same businesses are starting to gear up for ObamaCare. A year from now we are going to read horror stories about California restaurants closing.