How California Can Save Itself
Table of Contents
#
America is going to Hell
Trump’s tariffs are bringing on a global recession that will more than likely hit America harder than it hits the rest of the world. Trump is destroying international relationships left and right. He is dismantling national networks for health, education, social services, and so on. By the time he leaves office, even if a more sane government takes over, it will be left with a broken, impoverished, bitterly divided nation, deep in a downward spiral, with no friends left in the free world.
But there is some light, at least for Californians. We are beholden to the United States in many ways. But in others, we are practically a nation unto ourselves. In fact, if California were it’s own nation, it would be the fourth largest economy in the world, behind Germany and ahead of Japan. It’s time for us to take that economy out for a spin, and run our state the way we would want our nation to be run.
#
Picking up the slack
California is a “donor state.” That means that Californians pay more in federal taxes than the state receives in federal resources. Our residents and businesses contribute $83 billion more than we receive. In other words—we’re used to fending for ourselves.
Now, as services are set to be slashed, federal workers are being fired left and right (which will hit California harder than most), it is time for California more than ever to run itself like a “nation within a nation.”
#
Education
If the federal government guts the department of education, California needs to make up the difference, and then some. California used to be one of the gems of the nation as far as education. It’s universities are still excellent, but in public education California has dropped down to 34th out of 50 states. This is absolutely shameful for a state that prides itself on its universities, culture, and for being a hub for business and technology. (Back in the 1970s, when yours truly was a child, California was in the top 10).
California absolutely needs to return to it’s glory days of an enviable education system. Let’s be clear, this isn’t solely a matter of funding. It will require a complete overhaul of the way education is handled. There will need to be more schools with reduced class sizes. More teachers, and more training for teachers. Students will need to have higher expectations put on them, and be trained to meet those expectations. There will need to be a change in every aspect of the California education system. And yes, that means more money as well.
#
Health care
California is ranked pretty middling for healthcare, 23rd out of the 50 states. That needs to change. California has put a lot of effort into expanding healthcare coverage, which is good. It needs to put more into quality of coverage. Health insurance companies specialize in denying people the treatment they need; after all, that’s how they make more money. But California could, if not regulate that, at least offer people another way to fund their healthcare. And yes, that means more money.
#
Leading socially
Those are the two big things that states spend money on. California can also lead in affordable housing, job creating, livable wages, and resources for the retired and elderly. It already leads in environmental regulations and clean technology adoption (EVs, solar, wind, hydroelectric, etc). It can lead the nation in science, in protection of state parks, in citizen rights. If we work on it, and vote for it, we can make our state as close to what we want the nation to be as we can.
#
How to pay for it
All these things cost money. California is already expensive, as well as strapped financially. So as much as people may love these ideas, if we want to make them a reality, we have to pay for them. But how can we do that without taxing every citizen into bankruptcy?
I’ve collected ideas, none of which are new, but all of which can be implemented at the state level, without impacting the vast majority of California’s population.
Wealth Tax Many people think that a wealth tax means that if someone makes over, say, $50 million/year, a wealth tax means they will be taxed at a higher rate for all the money they earned that year. But that’s not what a wealth tax generally means. It means over a threshold, for example, $50 million/year, they’ll be taxed at a higher rate only for that portion of their income over the $50 million mark. I don’t think it’s too much to ask people who earn more than $50 million/year to contribute more to the state that has allowed them to make insane amounts of money.
Higher Corporate Taxes In the pre-Trump days, the largest corporations paid as much as 35% federal taxes. Trump knocked it down to 21%, and the current plan wants to knock it down to 15%. What this means is that there’s a lot of wiggle room for California to raise taxes on the largest corporations by a few points and still have their taxes reduced overall. If corporate taxes really did drop to 15% (nothing has passed yet, so we don’t have the final numbers) California could raise it’s highest state corporate tax rate by 5% and those mega-corporations would still be saving money.
Luxury Goods Taxes Increasing sales tax is regressive (meaning it’s harder on poor people) and I’d never recommend that. However, raising the tax on items that the poor never buy, such as yachts and jets and the like, is a good idea.
Pollution Taxes Trump wants to get rid of clear air initiatives, solar and EV credits, etc. Again, California can pick up the slack, but it needs funds. Raising taxes on polluters is one way to do it.
Investment Funds This is not a tax being raised, but a state-run investment bank that gives out competitively priced loans like any other bank, but takes that money and specifically invests it in infrastructure projects, affordable housing, renewable energy projects, etc. The idea is to create a long-term stream of income that is not based on state taxation, but investment.
#
Calexit…without the exit
There are limits to what California can do as a state within the United States. California can’t make it’s own foreign policy (although we can make “sub-national” partnerships and have on many occasions). It can’t regulate interstate travel or commerce (although it can make services far more expensive for non-Californians, another potential source of income). And of course California can’t have an independent military.
But as the fourth largest economy in the world, we can make choices. We can choose to invest in ourselves. Where our current income falls short, we can raise revenue, and a lot of it can be raised in ways that working class Californians won’t have to bear the brunt of it. We can create the laws, the equality, the environment, that we wish existed everywhere. We can make it clear to the world that even if America has chosen to antagonize them and be a horrible partner, we in California reject that attitude and will always be steadfast.
As America gets weaker, California can get stronger. And who knows, if California successfully becomes the nation that America wishes that it was, maybe other states will take our lead, and stop the death spiral the United States is currently in.