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.

Get news like this in your Facebook News Feed,
Gateway Pundit

Facebook Comments

Disqus Comments

  • 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.

  • Pingback: Despite Major Tax increases, California Revenues in FreefallPolitifreak()

  • 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.

  • http://none tommy mc donnell

    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-