It's often noted that California has the world's eight largest economy. This depends on how you do that math. At $1.9 trillion, the Golden State is just south of Italy on the IMF list (at number 9). But...Italy is having some rather severe financial difficulties at the moment. So if its GDP slips — and it's already slipped pretty far — and California's increases, will California move up? Then we can lock Brazil in our sights! Then the UK!
Actually, before we get too excitied, we should remember that if California were in Europe, we'd be in serious trouble.
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GOP Presidential Candidate Rick Perry
I honestly didn't think anyone could — or would — come up with a worse plan for U.S. tax reform than Herman Cain did with his 999 proposal. But Texas Gov. Rick Perry just released his "Cut, Balance and Grow" plan, which is also being referred to as the "20-20" plan, echoing Cain's 999. The difference is that Perry replaces Cain's 9 percent flat income and corporate taxes with a 20 percent flat tax for both. But there's more! And just in time for Halloween, it's...terrifying!
I'd like to call it stupid, but ridiculously stupid would be better.
The plan has four key pieces:
- Americans will be able to choose between the current tax system and the 20-percent flat tax.
- Corporations will see their tax rate cut from an average of 35 percent under the current system to a flat 20 percent with Perry's plan.
- Federal spending would be capped at 18 percent of GDP, which Perry argues is the average since 1960. This will, he insists, balance the budget by 2020.
- Workers would be able to opt out of Social Security.
Gotta love Google Public Data Explorer and it's ability to generate cool charts. I like to keep track of how California is doing economically with respect to our big U.S. rival these days, Texas. So I checked out some data on energy expediture as a share of GDP — how much the U.S., California, and Texas are spending, out of all the money we rake in, on power, propulsion, and so on. You can see a big trend here: our energy expenditure peaked in 1981, declined for a long time, then began to climb back up in the 2000s before falling sharply again after the financial crisis in 2008. But look at where Texas has always been. Well above the national percentage, and waaayyy above the California numbers. I guess you could say that Texas, energy-wise, has always been a lot more expensive to power than either California or the nation as a whole.