Despite Major Tax increases, California Revenues in Freefall

Stunner. Despite the major tax increase passed in November, California revenues fell well below projections.
The Daily Dose reported:

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.

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  • Mike

    Glad to see you back, Jim! I hope you’re feeling better and that the rehab goes well.

    So tax increases can stunt economic growth? Who knew? Well, besides most of us.

  • Multitude

    Shocker. Companies like the one I work for closed down offices across California, letting 250 people in the Bay Area, and several hundred more dispersed across a few more communities including the greater LA area, due to the conclusion that the tax and labor cost condition priced our services out of the market (when compared to global competition).

    What’s a thousand professionals making $70K to $150K a year before benefits, plus taxable revenue on hundreds of millions, to California? Apparently not much, given they are determined to drive non-captive employers out of the state.

    Fail and fail hard, parasites. It’s time to deworm the nation.

  • Sidney Allen Johnson

    One day democrats are going to learn economics…this is not that day.

  • AE

    They are finding the Laffer curve is not funny.

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  • luckyone

    Caution: Master Minds at work. What could go wrong?

  • Exile1981

    Liberals have very simple minds. They think that if they vote to steal others wealth those others will just pay it and smile about it. In fact those “wealthy” will move someplace different, someplace with out a liberal infestation.

    Liberals remind me of a buddies ex-wife (seriously). She always accused him of cheating and he never did, she on the other hand 5 affairs in as many years of marriage. During counseling she admitted that she assumed he had to be cheating because she had been. Liberals are the same way the accuse us of being greedy, racist and liers. They make those accusations because it is them that are doing those things and they assume we must be the same as them. Liberals see the worst possible motives for our actions because they know that it is their basest desires and worst faults that drive them to do the things they do.

  • Remco Kimber

    Next up, Berlin Wall style barriers at the borders to keep the suckers, err, “free” citizens in, plus internet firewalls to prevent capital from leaving CA.

  • mcashc

    The election was all fraud. No one is talking about it – they don’t want to be taken off the air. Good people are doing nothing- evil is taking over. Mob politics is in control. Threats to anyone in the way is what is going on. Is there someone to let the low info idiot whites that voted for this child know the truth? All you American capitalist billionaires- can u speak out and fund the free capitalist way? We are at war RIGHT NOW. Freedom vs communism- RACIST ANTI WHITE OBAMA COMMUNISM!

  • Economan

    Wow. I live in California and have been saying this would happen. Democrats are screwing everyone in this state and have been doing it for decades. This shows the level of incompetence and outright stupidity of the voters and the people they elect, that is, people they elect that will give them something for nothing. The REALITY of things is much different. I can’t wait to leave this stupid state.

  • the blind spot of socialism; there has to be an incentive for people to work and working for the politican won’t do.

    that is what they inevitability have to resort to the point of a gun.

  • Bronson

    My own family is moving to AZ

    First they came for the rich …. it’s only a matter of time

  • dw dude

    bye bye blue state, hello red state…there will be a continuing exodus of small businesses from cal e fornia

  • stuart

    Thank you sir may I have another.
    Thank you sir may I have another.
    Thank you sir may I have another.

    California’s new state motto.

  • pat

    Many feel that disaster will bring about a sense of economic reality to the left. This will not happen. Being liberal is a state of mind. economics is hardly an important issue compared to conformity in the liberal community. No matter how one tries, Hispanics will not vote Republican. Because all we have been taught, mostly by Bush. is a lie. Hispanics do not have family values. They hardly go to church. The crime rate is high. The welfare rate is ridiculous. They can break the law with impunity because the border is a safe zone. And they believe California is theirs. We see liberal businesses go bankrupt time after time. Do the owners ever stop preaching liberalism? Think of the LA Times and the numerous green companies. Unions never compromise, they prefer to destroy the business rather than continue at a realistic wage. Why? Because the members believe that welfare is equivalent to work, so there is no cost. One need merely sample the comments to any LA Times article to sense the hatred of the left and its strange sense of unreality.
    And to them Obama is really a flawless messiah.

  • Fiftycal

    We need to put up a fence to keep the rest of them IN Kalipornia. Otherwise, when the inevitable happens, the takers will start streaming out like the reverse of the Dust Bowl/grapes of wrath disaster. Thankfully most of them won’t have guns.

  • Hera

    Very happy to see the takers getting what they deserve. Which is nothing.

  • democraps suck

    You couldn’t pay me to live in that god forsaken crap hole

  • donh

    Don’t ignore CT…A state that moved hard left in face of Tea Party 2010 wins , switching from Rino R to a D governor, and passing the largest tax increase in State history. Deficits are being revised upward by the day. The state just had to raid an account to cover operating bills and take out a new 500M line of credit.

  • C-Christian Soldier

    off thread- GO ARMY –
    best Navy-

  • C-Christian Soldier

    off thread- GO ARMY –
    beat Navy-

  • Patty

    Hummm! TELL THAT TO OBAMA. But we still haven’t seen his College Records and I suspect he was no math major. JUST AND SOCIALIST AND COMMUNITY ORGANIZER. Now, we have enough of those.

  • BurmaShave

    Will the Libs ever learn?

    Not until they have such a crushing defeat that they cannot blame it upon anything than themselves.

  • Economan

    Not to worry people of Kalifornia!

    The media will just ignore the incompetence from the people THEY endorsed and helped elect…and presto! Nothing to see here! No need to concern yourselves with trivial fiscal policy matters, just let the grown-ups do it…!

    Now be a good flock of sheep and continue to bend over and everything will be okee dokee…

  • rolling thunder

    California has literally been destroyed by the Browns–first Jerry, then Willy, now Jerry again. What should be the most prosperous state in the nation is being turned into a taxation hellhole by the stranglehold of the public employees unions. California is now beyond repair.

  • Look-Out

    A few have mentioned fences to keep the tax payers from fleeing the high taxes to a safer haven. I think those ways of “restraint” are being planned on the federal level. Newer passports are being/have been designed, I recall reading, to prevent such an exodus…


    But I really wish this report from California would be broadcasted to show the rest of the country what punishing taxes actually produce. Average Americans need to be educated on what the commies know. Then it might provoke a march on Washington to demand this administration give up on its insistence on what will NOT WORK…in fact, what WILL RUIN US.

    Deny the beast his heart’s desire.

  • Nosmo


  • Look-Out

    Just read the newer posts before mine…

    Look, SOMEBODY has got to force the stupids to look at the history of DEM ways destroying every state they run. It takes a conservative to go in and finally clean up their messes.

    Will Jim DeMint do some of that work? Read “The Real Reason DeMint Left the Senate” — in the right column NewsMax link — it’s a great read for those who are fans of JDeMint —

  • Buffalobob

    The bigger problem will come when the Californians leave their failed state and bring their prog ideas with them to infect other states. See oregon, Washington. Same thing happening to the boarder states with illegal aliens who fall victim to the socialist leaders that they fled from.

  • iconoclast

    “California students and working families won a clear victory today as voters clearly demonstrated their willingness to invest in our public schools and colleges loot the private sector to pay greedy government workers and also rejected a deceptive ballot measure aimed at silencing educators, other workers and their unions.”

    There. fixed it for them

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  • JDubya

    Liberal progressives cannot comprehend a paradox. That is why they continually fail at every move they make and do whatever they can to assume “control”.

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  • Multitude

    Liberals treat earnings and property confiscation (“taxation”) as they do gun control: honest people are not permitted to engage in any behavior that might resist the violent assault of the parasite that seeks to steal from its victim.

    Barack Obama: King of the Tapeworms.

  • Bill Mitchell

    This must be the least shocked I have been in a year. The truly amazing part is that these idiots keep winning elections based upon policies we KNOW don’t work.

  • Jim

    Government Greed! Keep saying that phrase over and over. Especially say it to libs. I like to see their blood pressure rise. Ready? One more time – GOVERNMENT GREED.

  • The people of CA that voted to raise taxes are not stupid. Since they pay little or no taxes or work for the government and will thus get their tax money back and then some, it is in their best interest to increase taxes. CA reached the tipping point long ago. The only answer now is to have the rest of the country subsidize them.

  • jainphx

    Look around this country and you will find hell holes like Detroit, Chicago etc, where murder is rampant, and the city is in shambles. Garbage strewn streets and boarded up houses and businesses, that out number those being lived in. Now you have to ask what do all these cities have in common? If you answered that they have been run by Demoncraps and the unions for decades, you win the prize.

  • Patty

    WHY? Old liberal JERRY BROWN.

  • sailor gus

    california…the land of fuits and nuts.

  • Patty


    35,000 rubber ducks in Santa, reindeer outfits seized at L.A. port

    They may have had better luck on Santa’s sleigh, but more than 35,000 holiday-themed rubber ducks from China were detained by U.S. Customs officials at the Port of Los Angeles.

    U.S. Customs and Border Protection officers seized the ducks — dressed as snowmen, gingerbread men, penguins and reindeer — which were valued at $18,522, after determining they contained the chemical phthalate in excess of the limit which may be harmful to children.

    Phthalates are used to make vinyl and other plastics soft and flexible, the U.S. Department of Homeland Security said in a statement. Consumer officials prohibit the sale, distribution and import of any child’s toy or child care item that contains concentrations of more than 0.1% of phthalate.

    In the last four years, the U.S. Consumer Product Safety Commission and Customs and Border Protection stopped more than 8.5 million units of about 2,400 different toys and children’s products due to safety hazards or failure to meet federal safety standards, officials said.



    Economic proof does not matter to a progressive. If it did matter their beliefs would change and we see that never happens.

    Some once said the repeating the same process over and over resulting in failure was a measure of some mental issue….oh yeah insanity.

  • Whiskeytangofoxtrot

    California lost two additional subjects. Our daughter and son resigned their two positions and are headed to take up residence in our Red State. Hey Moonbeam – you are getting lonelier and lonelier by the day! Better figure out how to tax the sun and waves next.

  • Steve

    WELCOME BACK JIM!!!! Hope you’re knee is fine!!!!!!!!!!!!!!

    Common Cents

  • UpChuck.Liberals

    Color me S H O C K E D ! ! ! Just a reminder my dear Destruction Party members, you OWN this, lock stock and barrel. As goes the PRK so goes the USA. Hang on kids it’s going to be a nasty ride. Oh don’t worry though, the genisues that came up with this will be just fine, especially the one with his little Mansion in Hawaii, maybe Moonbeam can rent a room.

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  • OBAMA always in the news but never did i know what he do?..sorry for obama fanatics around here but what are they really contributed in the country?..

  • Shawn

    prop 30 was a sham from the start. who votes to pay more taxes on themselves? The unions took over the ballot box just like always and got their raises. CA voters are mostly very stupid people. Up next for CA you go to work we will collect your pay check and then decide how much you will get back from us.