Posted on 07/01/2023 6:30:19 AM PDT by CFW
Heavily taxed blue states such as New York and California last year had some of the country's most drastic drops in tax revenue. At the same time, Republican states are enjoying the highest revenue increases even as they keep income taxes low.
Under Democratic governor Gavin Newsom, California has turned a $100 billion budget surplus into a $32 billion deficit, Bloomberg reported Friday, forcing the state to trim its "lofty climate change program, delay funding, and increase internal borrowing." In this year alone, the once-Golden State has seen its tax revenue crater by nearly 25 percent as it hemorrhages wealthy residents to lower-taxed states.
New York, which under Democratic governor Kathy Hochul has the highest tax burden in the country, saw a similar revenue drop of almost 20 percent. Both California and New York last year saw their populations shrink by about 294,000 residents, Bloomberg reported.
California and New York aren't the only blue states with tax problems. Illinois, New Jersey, and Hawaii also reported drops, according to Bloomberg, though theirs weren't nearly as drastic.
(Excerpt) Read more at freebeacon.com ...
Laffer proved this decades ago. Big shock for the youngsters to see it happen now I guess.
Bankruptcy is the only way to stop bloated leftist government and wokeism.
You don’t vote your way out.
Illegals sucking them dry and sending the money home ?
And guess what? The democrats want to run Newsome to Make America California!
[[Under Democratic governor Gavin Newsom, California has turned a $100 billion budget surplus into a $32 billion deficit]]
Th3 only solution then to this deficit is to give out $100 billion in reparations
California has smugly noted that if they were a country alone, they would be the 7th largest economy. I doubt that is true now.
Mayor Bloomberg understood this when he said to NY, that the bulk of the state and city income taxes are paid by a handful of people who can easily leave, so stop raising the rate.
One thing he got right but could not convince the communists.
Wikipedia says it is the 5th largest economy if it were a sovereign nation. Smaller than Germany, but larger than India.
I wonder if there will be a coordinated response to the drops in revenue by these blue states and what it may be?
travel restrictions upon leaving?
Wealth exit taxes on way out?
forfeiture of property within borders of blue state they are leaving?
punishing of any remaining relatives and friends within said borders of blue state?
I can't stand when I see this. It should be Democrat, there is nothing democratic about the Democrat party.
I’ve noticed a lot of cops out giving tickets lately after maybe two years of relatively little activity. I was wondering when they’d ramp it up again given the hit to the demon rat money stream here in NY. Not really sure why in the first place they seemed to almost disappear.
Yeah but a large chuck of that is because California is part of the US. If it became a stand alone country and economy I would expect like George Castanza for Cali to experience some shrinkage.
Can you say “Bailout”?
Of course once you’re forced to stay in your “15-Minute City”, and won’t be allowed to move without government permission, this will all go away.
Venezuela was a very prosperous advanced nation too when socialists/communists took over and turned it into another third world cesspool where the rich (the elites) live comfortsbly while the citizens starve and go without. Ca.ifornia is following suit
I think what is happening is a permanent restructuring of the life and career of knowledge workers. The concept of knowledge workers was born in big cities. It took big buildings full of people playing specific roles in increasingly effective and productive process driven businesses. Along came computers. Big buildings full of people attacked automating business processes. When COVID came along, CEO’s discovered their companies could almost run themselves. Now, we have AI putting additional pressure on elimination of many careers paths. Bottom line, I don’t foresee the need for “big buildings full of people” in the near future. We’ll see many big blue cities go down the toilet just like Detroit. The more the cities economy is driven by big buildings full of people, the more and faster it is going to hurt.
If you find yourself working in a big building full of people, I’d be planning a way to the exit while you have some choice. AI is the wild card never played before. AI has the potential to, for example, eliminate the entire IT organization save for a few to do hardware work. When businesses begin accepting AI generated legal documents, no more corporate lawyers.
We can all only make educated guesses, but beware, new card on the table this time. Like poker with the joker.
So just raise taxes.
“...So just raise taxes...”
LOL...surely, another stick of dynamite wouldn’t hurt the outflow at all. /s
> Bankruptcy is the only way to stop bloated leftist government and wokeism.
And the best way to get them there is to start construction of a high speed rail route.
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