GOP Lawmaker Warns California’s Economy ‘Comparable to Greece,’ Citing Highest Taxes in Nation

As California faces mounting debt and an ongoing budget deficit, Rep. Darrell Issa, delivered a stark assessment of the Golden State’s economic health, comparing its trajectory to struggling European economies and warning that high taxes and regulations are driving unsustainable conditions.

Issa, who is retiring after 26 years in Congress, said California’s economy—while large enough to rank among the top five globally on its own—suffers from chronic fiscal mismanagement.

“Compare it to Greece or Italy or other economies that were dying for running this, expecting someone else to pay,” Issa said. “We have an ongoing deficit and large debt in California and the highest tax in the nation—income tax at 13.3%.”

He noted that in the current governor’s race, multiple candidates are proposing further tax increases, including a so-called wealth tax, which he described as “politically popular, but maybe not financially fiscally responsible.”

Gas Prices and Regulatory Burdens

Issa also pointed to uniquely California regulations as the primary driver of the state’s inflated gas prices, recounting a recent visit to a convenience store where a sign behind the counter read: “California has the highest taxes in the nation, don’t blame me.”

“Whether it’s 7-Eleven or Circle K, they make pennies on gasoline,” Issa said. “Most is a combination of regulatory mandates unique to California, departure of refining because it can no longer meet the standards that are arbitrarily set for the gas tax in the nation.”

He linked the state’s energy challenges to broader geopolitical tensions, including the situation in the Strait of Hormuz and ongoing confrontations with Iran.

Political Shifts in Los Angeles and the Governor’s Race

Issa weighed in on the Los Angeles mayoral race, reacting to a recent debate in which the incumbent mayor defended her record following criticism over her handling of wildfires.

“It’s an interesting situation where you have a mayor who, in a single massive error—those fires in her follow-up—has made what would normally be a walk in the park highly controversial,” Issa said. “Whether it’s from the left or the right of her own party, she’s being challenged for incompetence. Los Angeles is not the go-to place in the Golden Bear State it was.”

When asked whether California could potentially elect a Republican governor or Los Angeles a Republican mayor, Issa said polling suggests it is possible, despite a 20-plus-point deficit.

“Voters, a little bit like President Trump said during his campaign: ‘How is that working out for you?’” Issa said. “Meeting the status quo—collecting one after another career politician, Democrats—has led them to the worst situation in the city and state we’ve ever seen. It’s a long shot? Yes. Do they have the resources they’d like to have? No. But polls show they are far exceeding the so-called generic quote, and that gives me hope voters are seeing it’s time for a change.”

National Security, AI, and Nuclear Readiness

Issa, who serves on the House Foreign Affairs Committee, also discussed his recent visits to AI facilities and the Lawrence Livermore National Laboratory, framing technological competitiveness as a national security issue.

“The cost of modernizing nuclear preparedness is in no small part because of the resurgence of Russia and places like North Korea and Iran—missile systems we are spending so much on because we have nemeses coming in expensive ways to destroy infrastructure and kill people,” he said.

He expressed optimism about U.S. leadership in computing, noting that the world’s largest supercomputer is undergoing an upgrade and that American firms remain at the forefront of CPU development.

Looking Ahead

Issa confirmed he does not plan to disappear from public life after retirement, saying he is working on a second book and intends to remain a champion for cutting government waste.

“President Trump is trying to do impossible things. He mentioned DOGE—DOGE got a bad rap,” Issa said. “The reality is there are hundreds of billions of dollars of waste that the American people shouldn’t have added to their debt. I intend on being a champion to continue finding that and, with the help of this administration, an end to the fraud we are seeing around the country, including my home state.”