But it now appears that high income earners have already “voted with their feet” by moving themselves and their businesses out of state...do I really have to say it???
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 ...
Well - One + One = Two... some arithmetic that Libs have NEVER bothered to learn. Tax increases + Increased spending = Increasing deficit. How complicated is that?
The California ‘RATS will blame it on Bush or Sandy. You can’t fix stupid.
agree with previous poster, they didn’t raise taxes enough, obviously. Then, once it gets to 100% of all income, they can nationalize all private business and property, and take all net worth. Surely that would work for them. And when that doesn’t work, well, only thing left it is to liquidate some of the uncooperative residents.
CA should probably borrow some more money and build a wall (iron curtain) to keep their people from fleeing?
As us Freepers would say, “well, durrrrrrrrr...”
Astonishingly, the article doesn’t appear to contain the word ‘unexpected’.
The roaches that infested California in the Sixties, Seventies and Eighties are now finishing the job of burning (my home) state to the ground before they all colonize Oregon and Washington and other states to begin the process anew. (Yes, I know it’s already well underway in those states and in others).
In the good old days, Colorado natives had a dislike for Texans, who showed up at the winter resorts, and were a bit too ostentatious for the locals. When left coast real estate boomed, the Californians bailed out en mass when they discovered they could buy the same house in Colorado for 1/5 the cost (with 5 acres of land surrounding it). Two bumper stickers seen during that time:
“At Least the Texans Went Home after Ski Season”, and, later:
“Don’t Californicate Colorado”
>>> .... California State Revenues in Freefall
WHAT in the world does that have to do with things?
Democrats designed the scheme to give them absolute power, absolute control, over The People. They have completely destroyed ‘their enemies’. Look at the CA repub in shambles. It worked, didn’t it?
Do you think they fear People rise up and oppose them? No, those who are able, left.
A lot of high roller already are non-residents of CA..while spending about six months a year there. I wonder about Romney. He has a house in La Jolla and NH I think. NH has no state income tax..I wonder which one will be his tax residence?
For those who are considering a move to N Nevada to work in the Reno/Carson City/Sparks area, I have a rural property all set up for horses.
Need to move closer to a family member who has health issues.
I have a CASH finder’s fee on this property. Contact me if you are interested.
problem is the Calif stupids will buy whatever the libs are selling.
The Laffer curve is not funny for those whose refuse to acknowledge its truth.
It’s not like history is absent of lessons to be learned from bad fiscal policy and oppressive taxation.
The people in charge are either stupid or just don’t care about the consequences.
Contributing states like Texas (net contributor) will get fed up with having to bail out the failed social engineering policies of other states. As long as things are okay nothing will happen.
But when the collapse affects the daily lives of people there will be a reckoning.
It is as predictable as the law of gravity.
The only question is when, how, the cost, and what will be left in the aftermath.
I’m admittedly not smart enough to answer those questions but I am smart enough to know its coming and I need to be prepared to survive or be at the mercy of FEMA, DHS, etc.
This is a true story...in Germany back around twelve years ago...the liberal democratic gov’t had decided that they’d raise the taxes on cigarettes...in a two phase approach. It’s not a minor tax hike....it’s very significant in nature. On one side, the tax revenue folks who desperately need more cash in the tax bucket for the government to survive, and the other side are the health folks who want enough taxes to pursue folks to quit smoking.
Well...they get around eight months into this new taxation period, and nearing where phase two of a hike would occur. Suddenly there’s an emergency meeting of the tax revenue folks and the leadership of the Chancellor’s office. There’s a major problem.
The money they typically take in for eight months....is around thirty percent less than they anticipated. It’s a huge drop in revenue. At the one year point, it might be near forty percent less tax revenue than they were aiming for. They need solutions and answers quick.
The health guys stand up and say that the high tax rise was enough to make people quit buying German smokes (evident by fewer cigarettes sold). Full speed ahead for them.
But then, the customs people speak up and admit they’ve been catching thousands of people bringing in cheaper cigarette cartons from Poland, Luxembourg, etc. Some guys were bringing in thousands of cartons which had been slipped into ports with no taxation and were being brought into a new German black market.
Suddenly, it was obvious that the increased tax rate deal had backfired and they made a quick decision not to implement phase two. They instead tried to put more emphasis into stopping the black market and hope to bring the tax losses back into the normal range.
It’s been a decade now....and there’s still lots of illegal cigarettes being brought into Germany....avoiding the taxes entirely. They lost billions over that decade period from their tax revenue practice. No one will admit it was a stupid move....but they’ve had to raise taxes on other things...to make up for this loss.
Hayek was right.
Notice how hard-core Obama and his cronies (and backers) are. Look at the fiscal cliff pseudo-debate.
Next set of dictators will be even harsher.
But it now appears that high income earners have already “voted with their feet” by moving themselves and their businesses out of state...do I really have to say it???
Headline should read: “Because of Tax Increase, Tax Revenues Fall”
This is one point that the old-school democrats and republicans could agree on, that if you lower the tax rate, you’ll increase tax revenues. JFK proved this. Reagan proved this.
This is the point of the Laffer curve, that the tax rate has a peak where it will cease to result in higher tax revenue, once you reach that peak, if you raise the tax rates higher, revenue will fall off as the workers and producers will take offense at being robbed and will have a vested interested in finding ways to hide their money and protect their earnings.
We must now assume that the politicians who seek to raise the tax rates know this to be an undeniable truth and that they are raising the tax rates not (as they claim) to increase tax revenue, but to punish the workers and producers.
Again, their end goal is to perform a Trayvon type smashing of the head of their opponents into the sidewalk, spitting in our face as they crush our skulls saying, “Don’t you ever...EVER deny me the power to do whatever I want. You deserve to be punished. And I’m going to punish you until you wish you’d been born and raised in the poverty of a third-world country, which is what we are going to turn America into.”
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