Open Policy Discussion

Revenue from Regulatory Charges

by | Feb 5, 2025 | Business and Competition, Economic Opportunity

Since it started ranking states as the best and worst for doing business in 2006, up until the most recent measure, Chief Executive Magazine has placed California at the single worst, #50, for every year. This is an abominable record. It advertises that our state is hostile to business, and that companies thinking about locating in California would do better almost anywhere in the US.

Whenever the state imposes regulatory charges, the revenue should be directed to lowering the burden on doing business in California that resulted from the regulation in question. See, for example, the proposal that the cap-and-trade revenues currently directed toward the high-speed train be redirected to increase the earned-income tax credit for low-income Californians.


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