Callifornia

California has a state budget of $321 billion and a $73 billion deficit. Texas has a $338 billion budget and a $24 billion surplus California has a top state income tax rate of 12.3 while Texas has no state income tax California has a 7.15% state sales tax and Texas is at 6.5%. California gets 50% of its budget from the federal government and Texas gets 38% California’s population has been declining since 2021 while Texas has added more people than any state. Last year the population increased by 563,000. One of the main reasons for this discrepancy is that California relies heavily on income tax from very rich people, mostly in Silicon Valley, while Texas has a more diverse economy and relies more on sales tax. Adding to the problem is California’s $1.5 trillion pension debt obligations vs Texas with only $86 billion.