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 ...
>>The Laffer curve is not funny for those whose refuse to acknowledge its truth.
>>
>>The people in charge are either stupid or just don’t care about the consequences.
I don’t see this as an either/or situation. They are both stupid and evil. They embrace the consequences because they believe the high taxation on the rich” will even out “wealth inequality”, and they see this as a desirable outcome appropriate to be addressed via government taxation policy. Who cares if it destroys the economy for everyone?
And further regarding Laffer, these people are largely innumerate. Expecting them to properly interpret a very complex chart (not really) and the resultant effects on public policy is asking a whole lot.
The addict needs higher and higher doses to achieve the high they crave.
Giving more taxes to Sacramento is like giving heroin to an addict.
Yeah, I think the taxes take effect next month.
They are using projections. So if the increased tax income is less, the deficit will actually be higher than they are projecting.
If you want less of something, tax it. Raise income taxes and income drops. Less income equals less revenue. CA isn’t smarter than a 5th grader.
You're not considering the fact that people of means don't have to leave California to have their income leave California. Many of them do exactly that, spend considerable time where they like in CA as tourists, but are legal residents and taxpayers of other states.
People of means can Californiaproof their wealth while spending small amounts of time outside the state, and they do.
It’s an income tax not a wealth tax. The super rich probably don’t need much income. What they own is bought and payed for.
And there's no sales tax in OR.
Live in WA, shop in OR!
Gee, this is so “unexpected”.
Raise Taxes and revenue falls what a coincidence.
Baaah, humbug.
If you tax something, you get less of it. If you subsidize something, you get more of it. California taxes the creation of wealth, and it subsidizes illegal immigration. ‘Nuff said.
state revenue for the month of November 2012 fell $806.8 million,
I believe this is called the “Lafer Curve” taxes can only go so high then revenues begin to fall.
a basic rule of economics and taxation....proving that all the Morons in Sacramento are clueless. and have Destroyed the State...voted in by stupid Parasites.
Sometimes the jokes just write themselves.
>voters clearly demonstrated their willingness to invest in our public schools and colleges
WTF? By increasing the tax rate of the people that provide jobs in CA? Any halfwit should know that these people they increased the tax burden on just might up and leave for greener pastures.
Too many people don’t use their brains.
The ministry of truth reports that due to lower productivity chocolate rations will be decreasing. The good news is our war with East Asia will continue forward with our invasion of Syria.
Really All those taxes don’t equate to More Revenue? Shock Shock!!! Guess they are all leaving!!!!
Math is a bitch.
Well duh. The rich didn’t get rich by being stupid...or by being sheep. They will pick up their wealth and move elsewhere...where the taxes are less punative. After all....if anyone can afford to just move somewhere else, the rich can.
The ones who will suffer either directly or indirectly are those that can’t afford to just pick up and move to another state or country. Per usual.
This nation is already at “Idiocracy” status. We’re quite screwed.
Note the last sentence in the last paragraph.
BECAUSE OF not in spite of .
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