California Leavin, on any given day! 

Seems the Mamas and Papas 1960's hit 'California Dreamin' could be modified to reflect the exodus of business and citizens to lower tax states according the latest rankings in ALEC's 5th annual 'Rich States, Poor States' recently issued report. Add in the stunning news today that California Governor Brown has revealed the state's budget deficit for this year has nearly doubled in 5 months to 16 billion, with his massive tax increase solution and it is obvious that more California businesses and job seekers will be heading out of the Golden State in search of a more business/job friendly environment. 

As the 'Rich States' report points out, high tax states are not doing well, while low tax states are booming, which brings us to Oregon. The Beaver state ranks 45th this year, worsening from last year's ranking of 43rd. The effects of raising taxes on the job creators and corporations in Oregon from the effects of Measures 66 &67 is clearly taking it's toll as our state has lost jobs over the last two months and each state revenue forecast is miserably short of predicted income tax revenues. Yet, the unions here are gathering signatures for another round of tax increases that will only make the situation worse, sort of putting Oregon on the path of following California's death spiral. If you add onto higher taxes in Oregon the coming 'taxmaggedon' when the Bush tax cuts expire on January 1, 2013, plus the new ObamaCare taxes that kick in at the same time and you have the perfect storm here that is happening in California today, with capital, business and talent leaving the state for greener pastures. 

All of this points to the need for Oregon to lower tax rates to stimulate growth as Oklahoma did in 2010, with the impossible to dispute success of it's effects on job creation and increased tax revenues. In Oregon,  voters may have an opportunity to eliminate Oregon's 'death tax', which the 'Rich States' report points out is one of the most economically damaging taxes a state can have, if it makes the ballot this fall. While an important step in the right direction, reducing Oregon's income tax must also follow soon thereafter if our state has any hope of being competitive amongst other states that have figured out that low taxes and less regulation create wealth for all, rather than poverty for most. 

Unless California realizes this fact, California Dreamin will be relegated to it's place in history as a hit song and not a reality for millions who desperately need to live the American and California dream.