California Gov. Gavin Newsom sues the Trump administration for withdrawing $ 4 billion in federal financing for high-speed rail. But President Donald Trump actually has no derailed trains. And the only thing that the lawsuit has really done is to expose the train wreck that the tax situation of California is.
For months, Newsom has bragged about California with the world’s fourth largest economy and sends more money back to Washington than it takes. He is right, but he also ignores it conveniently that California also has the highest real poverty rate of the nation and a projected budget deficit as high as $ 20 billion.
That simply scratches the surface of the tax mess that Californians deal every day – not only in Sacramento, but at every level of the government.
California Gov. Gavin Newsom presents his revised state budget from 2025-2026 during a press conference in Sacramento, May 14, 2025. (AP Photo/Rich Pedroncelli, File)
Let’s start with the high -speed project. The voters approved in 2008 to walk from San Francisco to Los Angeles at an estimated cost of $ 40 billion with an completion date of 2033. From June this year, the expected costs were up to $ 128 billion without trail.
The green new California scam can cost you $ 20,000
Residents of Los Angeles know this kind of bureaucratic incompetence all too well. Complex and sometimes conflicting environmental regulations for provinces and the state played an important role in the closure of the second largest landfill in the province, Chiquita Canyon, at the end of 2024.
Residents must now finance the extra costs of transporting waste to a landfill further road, while local politicians are obsessed with “price -lying” by those who transport and handle the waste of residents. Taxpayers are sufficiently charged with the political junk Sacramento sends their way; Local officials would be much more useful if they, instead of added, would be reduced to hope.
In the meantime, Los Angeles does not seem to provide essential services at any price, pronounced or otherwise. View all the fire hydrants that did not work during the recent fires and the empty reservoir run by the city. Everyone who supervised those failures and still has a job is taxpayers for every salary.
Paying for incompetence is bad enough, but what about corruption? That is what taxpayers throughout the state have financed for years, because civil servants in the state, provincial and city governments have worked together in a Medicaid reimbursement scheme by providers in the hands of the government to ask no less than 13 times more for certain services than the private sector.
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This practice has not only pressed private providers, which limits the care options for non-medicoid patients, but it has enabled California to make its non-financed pension obligations for government employees by deploying the difference.
And those obligations will be more likely than policy makers prefer, because the highest costs of living in the country and the top marginal tax rates continue to expel taxpayers and companies from the state.
“Companies that want to grow and parents who want to take care of their families have been moving from California for ten years, especially to states such as Texas and Florida that have no or minimal income tax,” said Vance Ginn, Ph.D., chief economist for the Office of Management and Budget during the first Trump administration. “And that trend will probably not reverse itself because legislators and regulators continue to spend the state more and regulate and tax residents.”
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Cleaning up the fiscal mess of California will cost much more than creative accounting tricks, piece by part of the federal financing fairs and the soaking of the taxpayers-such as the one-off windfall of asset benefits that the temporary surplus created in 2022. It requires to implement again in combating the regulatory budds and companies.
That is why the news case of Newsom on the train funds is not about infrastructure. It’s about image. His flip about problems with gender identity and sudden support for reducing the horrific housing instructions of California were Sops to “the Middle”, but he also wants to make the left happy by showing that he can stand up against Trump. Of course on federal taxpayers costs, while claiming that he keeps California “innovative”, while the basic board collapses underneath.
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