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Just when I thought that my husband and I have been paying too much taxes, we are having another tax hike in California.  This is a basic run down of the new taxes.

  •  The vehicle licensing fee is doubling to 1.15%.
  • Sales tax is going up 1%, which means in San Mateo County I will be paying 9.25% on services and non-food goods.  So guess what, my hubby and I will probably shop more on Amazon for the non-essentials.
  • Income tax is going up by 0.25% so the top bracket is now 10.55% for those making over $1 million per year and 9.55% for everyone else.    For the hubby and I the extra amount we will pay is just under  the .  So our net stimulus would be around 50 cents a week.  Haha!
  • The dependent tax credit is reduced by $210, so families with tons of kids will see a hit in their tax bill.

It is unfortunate, but this state has way too much debt and something had to be done.  Raising taxes is a almost inevitable.  Supposedly these tax hikes are temporary for two to four years, but the economic crisis might make them permanent.

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Recently I read about in the past four years.    It’s really not a surprise to me because I have seen the rapid rise in cost of living, taxes, and unemployment in the past few years.  Combine that with a state government that is in constant turmoil and you have a very stressful and unstable situation to be in. However, is the California dream really dying?

In my mind, the California dream is much more glamorous and adventurous than .   For example, every Chinese person I know still calls San Francisco “Old Gold Mountain” because of the Gold Rush.  The gold ran out, but the legend of sailing halfway around the world to California for treasure still remains. The dot com bubble burst, but some lucky few still made out like bandits and new entrepreneurs are still trying to strike it rich in the Silicon Valley.  The California dream gives people high expectations to become the richest or the most famous, but it also dishes out  big disappointments. The fact of the matter is that most people cannot attain the California dream.  Not everyone can become a movie star, and not everyone can be a dot com millionaire.

I have lived in California for almost 12 years now and I have seen both of my parents’ next door neighbors move out of state.  One of the families sold their home for a dandy profit and headed up to Oregon, and the other packed up to go to Washington.  Now my inlaws have packed up and left for the Philippines after living here for over 23 years and raising two children.  Honestly I am a little jealous, and a little curious as to if they love where they are now, but I think they have achieved their goals in California.

There are a lot of things about this state that I love even though sometimes I am so frustrated by all the things going wrong.  I love the innovative energy in the Silicon Valley, and the mostly sunny skies.  I love the diversity of people here and the availability of cuisines from all over the world.  This is also the state where I got a pretty decent college education even though my parents paid for it through tuition and oodles of taxes.  California is where I grew from a child into an adult, and for better or worse it is  a part of who I am.

It is very unlikely that I will leave California since pretty much my entire immediate family is here.  My husband is adamant that he would probably never leave California since he has lived here since he was two and my parents have worked pretty hard to be here.  This is home, and it is messy and screwed up, but it is still home. I am pretty sure it is going to get worse, but I also think that the innovations of Californians will make this the place to be once again. The California dream will live on because everyone dreams of a life beyond the ordinary, but perhaps right now it doesn’t seem like California is the best place to realize that dream.

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When I was in Southern California there was a truly bewildering story of a man who dressed up as Santa and murdered nine members of his ex-wife’s family, and when I came back to the Bay Area I read about something even more disturbing. In the past week the most bizarre and tragic story in the Bay Area has been the shooting of 22 year old Oscar Grant by a young BART police officer.  I only saw the more “conclusive” cellphone videos today and I have to say it is truly incomprehensible.  The young man was clearly on the ground and secured by more than one officer, and then the second officer stands up and pulls out his gun and fires into the victim’s back.  It took several seconds for the officer to take out the gun and the whole thing really looked like an execution and it is just unbelievable.

A lot of people including myself are wondering why the officer did what he did.  Apparently in the past there had been two more incidents where BART police blew away unarmed people, but this is the first time when citizen reporting with cellphone cameras have brought so much attention to a BART shooting.  According to the police immediately started to confiscate cameras after the incident, but a few people managed to keep their phones since their traincar left the station just in time.  Technology has made it possible for everyday folks to watch the watchmen, and that is comforting and yet disturbing at the same time.

The aftermath of the incident is yet to be played out.    Right now there is a protest at the Fruitvale BART station and trains are passing the station in both directions. more than 500people have showed up around 6pm and the station was closed since protesters blocked the fare gates.  The protest is scheduled to last another 2 hours.

Then there is the lawsuit a lawyer filed on behalf of the family.  The family is seeking $25 million dollars from BART, and it’s sad to say that this will be a Pyrrhic victory at best since no amount of money will bring Oscar Grant back.  BART could probalby cover the costs of the lawsuit with their liability insurance, but I am sure more public funds will be spent and ridership might even decrease a bit.  This is not good for the public since BART is such a vital service for so many people here in the Bay Area, but there has to be some accountability.

These horrible stories just show that you may never know when you will meet your maker, and you are never as safe as you think.  The police are supposed to be peace keepers, but some people let power get to their heads.  The classic showed that ordinary people who are put in positions above others stepped over the boundaries and I am sure it happens every single day.  Thankfully the internet gives the people a little bit of power back.

Finally, I offer my condolences to both the families of Oscar Grant and the officer.  I hope noone else gets hurt in the midst of this and we don’t have  full scale Rodney King-esque riots here.

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My hubby just told me that there was a .  That is the small suburb east of Los Angeles where his parents live.  We got in touch with his parents and they were both pretty far from their house, but we are unsure if their house was damaged in any way.  His friend who lives in a town about ten miles away said that a lot of picture frames in his house fell and the glass shattered and he actually ducked for cover. Currently there aren’t so many damage reports coming out of Chino Hills because most people are probably at work. We’re hoping that their house isn’t damaged in any significant way.  Most of the homes there are built post 1980 and they should be engineered and reinforced for earthquakes so hopefully the only damage is on some frames and other wall hangings.

The crazy thing about earthquakes is that you can’t really run away from them.  It is not like a hurricane, tornado, or fire where you actually see it coming and take the appropriate actions.  An earthquake just hits and leaves destruction in its wake.  Earthquake insurance is also extremely expensive in California so most homeowners do not have it.  I think the best preparation against earthquakes is really  cash that’s readily accessible.  As long as you have a bit of an emergency fund and can afford shelter and food then it would be okay.

Disasters can really strike anywhere at anytime, but it really is impossible to worry about every possible thing that could happen. Right now we are just waiting to hear back from the hubby’s parents on the condition of their house, and if they need any kind of help we would definitely contribute.

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On Friday I performed an interview for my team at work. My job was to take the candidate to lunch and answer questions the candidate might have and attempt to assess his intelligence and “fit” for our team. This is one of those very rare interviews that actually turned out well and everyone who interviewed the guy liked him and we decided to hire him.

However, I feel like he may not join us because he is actually currently living in Austin, Texas. He said that he went to a nearby open house in Foster City and was shocked to find that a tiny townhouse less than half the size of his home in Texas is listed for $900,000. He used to live in Sacramento many years ago but the cost of living there is nowhere near the craziness of San Mateo. Then we chatted about the Bay Area in general and I said that I actually did some research on Texas and found that I could afford a 40% pay cut and still afford a better standard of living. He agreed with me, and I asked him if he would consider relocating and he said he would probably prefer telecommuting. However, after he finished his 8 hour grueling interview my team lead did mention that he would like all core members to be close to the headquarter and telecommuting from Texas is probably a deal breaker.

I imagine this is happening all over the Silicon Valley. There are a lot of great talent from other states that are interested in the companies here, but are totally put off by the cost of living and the cost of relocating. Additionally, I know dozens of people who are exiting this place due to the same reason. Even though I love the energy and dynamics in this place sometimes I wonder if it’s worth it. Yes, we do have fairly high incomes compared to the rest of the country, but with that we have extremely high taxes and a ridiculously high cost of living. When all the math is worked out, I think many of us who live in the Valley could have better lives elsewhere.

I thought that the job candidate is wise to investigate the cost of living before making a decision. I doubt that he is getting a 70 to 100% pay increase because Austin, Texas is also a very lively city with an abundance of jobs. On one hand, I do want him to join our team, but on the other hand I was honest with him and I want him to make the best decision possible for himself. I really don’t want him to join my company and then regret it and become grumpy!!

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