Skip to comments.Despite Tax Increase, California State Revenues in Freefall
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 states $6 billion annual tax increase,with the Departments of Health Services and Developmental Services increasing this months spending by over $1 billion versus last year. The lower tax collection and higher spending drove the States 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 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)
California taxes are destined to be raised 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)
Ha Ha Ha
>>The Laffer curve is not funny for those whose refuse to acknowledge its truth.
>>The people in charge are either stupid or just dont 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.
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 .
It is the middle class that is leaving, the productive work force. This is far more serious than the rich leaving. You can live without the rich, but no car gets anywhere without a motor.
California is in a far more serious condition than they suspect if you are right. They no longer have the workforce to recover or build anything, just the welfare people to support.
I know from my days there long ago when I lived in the High Serra's that the welfare types moved up there into vacation land in droves. The check was the same size from welfare, but the cost of living was far less than the city. Soon we had drug ghetto’s springing up where once was lumber workers and other responsible types.
Then California killed the lumber industry, followed by the mining industry and I left California for other work. The county I was in now has 40% unemployment according to my friends that hung one, but there are more people than ever.
Just now they are all on welfare, up from the cities.
From a net producer to a massive net loss of revenue to the state, it was the workers that left. The rich stayed and the dependent class grew like weeds.
Will you stop it. If you say that enough people might actually start thinking that we have a spending problem.
We need more REVENUE!!!!
Ans: What Krugman will say.
The goal is to wreck the American economy. Hopefully, permenantly.
Why Romney didn’t point to Illinois and specifically Cook County as proof of Obama’s plan I’ll never know.
Obama is bringing not only Cook County politics, but Cook County economics to the national level.
It’s stupid and we conservatives better find our Reagan, stat.
Liberals and Marxist don’t have the ability to learn from experience...in other words they are stupid and there ain’t no cure for stupid.....they just make misery...
Bookmark for later.