The Cato Institute released its annual "Freedom in 50 States" report, and California once again ranked bottom.

The states are ranked according to measures of personal and economic freedom. Unfortunately, due to the state’s high taxes, extensive regulations, and mixed policies on personal freedom, the Golden State is only ranked 48th.

The report pointed out that although California’s local taxes are actually in line with the national average, its state taxes are much higher than normal. "Despite Proposal No. 13, California is still one of the highest tax states in the United States. California's state and local taxes together account for 10.9% of adjusted personal income," the report noted.

If Californians approved a spin-off proposal supported by the union and Governor Gavin Newson last year, this burden would only get worse. Fortunately, California voters reluctantly rejected this measure that aims to raise $8 billion in taxes annually from certain commercial and industrial properties.

In terms of regulation, California really stands out. The combination of land use restrictions and rent control in California has resulted in a housing shortage in the state, while extensive occupational permit laws and onerous labor laws have stifled employment.

The report pointed out: “On the bright side, the country does not have a demand certification law for new hospitals, and some measures have been taken to relax the control of cables and telecommunications, and the civil liability system has gradually improved in the past 14 years.”

On the personal freedom ledger, the report positively cited California's handling of marijuana, dignified death laws, the decline in imprisonment rates since 2010, and its status as an early leader in same-sex marriage. On the other hand, California has cracked down on e-cigarettes, implemented some of the toughest policies for legal gun holders, and has no private school choice plan.

The report proposes some policy changes that can increase California’s freedom: expanding legal gambling, further liberalizing the real estate market, and cutting state spending to reduce state debt.

These are reasonable ideas, with varying degrees of political feasibility.

Opening the housing market will be the most important of these proposals.

When adjusting the cost of living, high housing costs are the main driving factor for California to become the state with the highest poverty rate in the country. But the desire to control what type of housing is built transcends the usual partisan divisions, and Democratic cities such as Los Angeles and San Francisco are enthusiastically insisting on their harmful rent control policies.

The editorial board has long supported cutting red tape restricting housing construction sites, reforming the California Environmental Quality Act to limit lawsuits aimed at preventing housing construction, and resisting calls for expanded rent control.

California may never be able to achieve the degree of freedom that New Hampshire, the top-ranked state, has touted — especially the state government controlled by the Republican Party, but only Democrats are represented in Congress — but through careful policy changes and tangible benefits, it can Become a more suitable place to live, work and invest.

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