Posted on 12/08/2012 7:47:45 AM PST by lowbridge
California State Controller John Chiang has announced that total state revenue for the month of November 2012 fell $806.8 million, or 10.8%, below budget.
Democrats thought they could hammer “the rich” by convincing voters to pass Proposition 30 to create the highest state income tax in the nation. But it now appears that high income earners have already “voted with their feet” by moving themselves and their businesses out of state, resulting in over $1 billion shortfall in corporate and income taxes last month and the beginning of a new financial crisis.
Passage of Proposition 30 set off euphoria and expectations of higher spending for public employees. The California Teachers’ Association (CTA) trumpeted: “California students and working families won a clear victory today as voters clearly demonstrated their willingness to invest in our public schools and colleges and also rejected a deceptive ballot measure aimed at silencing educators, other workers and their unions.”
State bureaucrats immediately ramped up deficit spending far beyond the state’s $6 billion annual tax increase,with the Departments of Health Services and Developmental Services increasing this month’s spending by over $1 billion versus last year. The lower tax collection and higher spending drove the State’s deficit after the tax increase to $2.7 billion for the first 5 months of this fiscal year.
(Excerpt) Read more at gopthedailydose.com ...
Conservatives will be blamed, and the MSM will support it.
Google News is our friend. The story is true and at sources I’m sure you’d consider credible you can get all the lame excuses and rationalizations you’d expect for the “problem”.
the libtards in Washington will bailout the libtards in California. It will be another too big to fail and libtards are emotionalists and don’t care about principles.
This is a rather strange article: It begins by saying that high income Californians have “voted with their feet” and moved out of state, causing an increased revenue shortfall. But then it goes on for 5 paragraphs, citing studies and articles to “prove” that the “super rich” are not leaving.
My own anecdotal evidence suggests that the “super rich” may indeed not flee in large numbers: Generally they either “don’t feel it” personally, don’t mind, or can manipulate their finances such that the high taxes have little effect on them. Of course those same manipulations tend to damage economic growth...
I suspect that more important, what instead happens is that businesses gradually “bleed out” even if the top end CEO’s and such stay — after all, California is overall a beautiful / nice climate place to live. (If I didn’t need to worry about money, I’d consider it myself.) More important, new entrepreneurs and businesses look at the costs of a place like CA and tend to not move into it, depriving the state of vital “new blood”. Then add large numbers of people who are middle and upper middle class, including many retirees, who move to states with lower costs of living.
All said, reckless fiscal policies and a poor business climate probably harm CA more than taxpayers leaving to avoid the high taxes. But then again, all those factors and more are inextricably intertwined.
It’s a small example of the future of Al Amerika.
To the Socialist-RATs, no tax is ever enough.
“And, regretably, we owe the installation of Arnie to Bush and Rove and company, who moved in and “fixed” the California Republican party.”
And yet just yesterday, I responded to a poster who took exception to my comments that Bush was a lousy president! The Bushes, McLames, Doles, Boners, Arnolds, et. al., are the reason I am re-registering Independent. The GOP is at the root of this nation’s problems, because it is an gutless, semi-socialst group of East Coast “liberals” whose only care is which office they occupy in the HOB! and which DC parties they get to attend! BTW, I voted for Tom McClintock, a man who, as governor would have worked to put things back together. But we got instead a third-rate actor who has, it turns out, gone through life with an open fly!
“The beatings will continue until morale improves.”
a. Tax increases haven’t hit yet.
b. Falling revenues seem more likely to be the effect of the leading edge of a recession. Earnings, sales are down.
c. The article discussed the sociology of high income earners. Which is fine as far as that goes. People who are wealthy in California aren’t likely to leave just because of this increase. The real problem though is that business formation and growth in California is busted. New rich people are more likely to start getting rich elsewhere. And there is the marginal effect of tax avoidance.
The taxes on the rich are retroactive to 1-1-2012. How is that not a bill of attainder?
I think the name you are looking for is former US Senator Phil Gramm.
He was terrific.
“Obviously, they didn’t raise taxes enough. /sarc “
You don’t need the “/sarc” tag.
This -is- “obvious” to the leftists running the state. (From their point of view)
Fearless prediction:
California taxes are destined to be raised higher.
FAR higher...
Drudge proved to be correct, regardless of his method.
California has already gone over the cliff, of sanity. It’s now in free fall. Waiting, waiting, just waiting to hear the crunch as it hits the rocks below.
We don’t always get what we want, if we’re lucky we get what we can endure.
Sadly, for California, the electoral process is broken.. initiatives proliferate or judges take sides and cast out results.
The state leaped the economic and social continuum after Duke left .. it’s been free-fall since in the CA Gop. Re-Pete Wilson, GRay Davis. aHnold the ‘Independent’ and now MoonBeam II .. Is that Pee Wee Herman I hear in the green room warming up.. or Roseanne?
Oh,, and Prop 13 remains under active assault.. when it goes,, wellll,, you know the sound a ‘loo makes? lol
Didn’t the Fed bail out, or at least help out, Calpers once already? (Under BHO, that is)
Idiots.
California, lol.
Ha Ha Ha
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