Total Financial Solutions President/CEO Arif Halaby discussed the dire state of California’s finances with 2018 California Attorney General Candidate Eric Early during a special broadcast on KHTS this week.

Early described California as a “financially bankrupt state,” with Halaby noting that the state government is approximately $950 billion in debt.

“We are in debt in this state like nobody’s business,” Halaby said. “That’s millions of dollars for every man, woman and child right here in California, and that’s debt that has to be paid.”

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Early added, “There’s very little being said about this exploding debt that we are sitting on top of — it’s a time bomb. There’s something as attorney general that I want to look at when it comes to that.”

If elected, Early plans to create an advisory council of “the best and brightest” attorneys on the state’s payroll to examine if any of the state’s tax structures or business regulations are unconstitutional.

An ongoing problem with the rising number of taxes in the state, according to Early, is that the wealthiest individuals and businesses are leaving California as a result.

Halaby explained that many of the multi millionaires and billionaires from Silicon Valley list their primary residences outside of California to avoid paying state taxes, and big and small businesses alike are leaving as well.

“I have a friend that moved his business from Woodland Hills to Henderson, Nevada about four years ago. He took 30 of the 33 employees with him,” Halaby said. “In doing so, the money he saved in taxes has not built him just one home, but it has built him two homes … and a building for his new office, just in four years.”  

In 2015, Halaby noted that he was fined as an employer $150 per employee because the state of California borrowed money it couldn’t pay back. Then in 2016, the fine per employee not only returned, but went up, according to Halaby.

“The first time, Toyota said, ‘We’re out of here. We’re leaving Torrance and we’re going to Plano, Texas because California is not going to get it fixed,’” Halaby said. “Nestle gave them one year to figure it out. California didn’t do it. The next year was $175 per employee. Now I have eight employees, that’s one thing. But when you’re somebody (with) 1,000 employees, where do you go? You say, ‘I’m not going to stick around.’ And they left.”

Early added, “Businesses are either fleeing our state or they’re not coming here in the first place… This not only impacts all of our wallets, this impacts our ability to get great long-term, good-paying solid jobs for our families. Something has to be done about it. In California, this Democratic one-party regime that’s been in power for far too long, their only answer is to keep raising taxes.”

Another example Early gave in regards to California’s severe financial issues was the gas tax expected to add 12-40 cents per gallon. Early noted that San Diego politician Carl DeMaio has spearheaded a gas tax repeal that garnered 1 million signatures of support.

“This shows you what’s going on in the state… When all is said and done, we can’t afford those taxes,” Early said. “June 5 is a big day at the polls, and I believe that we’re going to have people from all political persuasions going to the polls and voting for some common sense to come back to Sacramento… California needs a major change. It’s why I’m running.”

Halaby added, “I think it’s the time — there’s a movement.”

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

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