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California Raises Taxes and Revenues Decrease: Who Saw That Coming?


One of the greatest weaknesses of the statists is that their efforts at creating a fantasy world. more often than not, create the exact opposite of their stated intent.  They try to engineer unicorns that fart rainbows, and they create a stillborn jackalope.  You would think that they would learn from such infamous failures, but they seem to double-down instead.  The latest example of this comes from Califailure.   Knowing, and probably denying, the long history showing that tax increases  cause a decrease in revenues, they have stuck with the highest tax rates in the country.  Breitbart has the predictable results.  

State Controller John Chaing continues to uphold the California Great Seal Motto of “Eureka”, i.e., ‘I have found it’. But what Chaing is finding as Controller is that California’s economy as measured by tax revenues is still tanking. Compared to last year, State tax collections for February shriveled by $1.2 billion or 22%. The deterioration is more than double the shocking $535 million reported decline for last month. The cumulative fiscal year decline is $6.1 billion or down 11% versus this period in 2011.

While California Governor Brown promises strong economic growth is just around the corner, Chaing proves that the best way for Sacramento politicians to hurt the economy and thereby generate lower tax revenue, is to have the highest tax rates in the nation.

California politicians seem delusional in their continued delusion that high taxes have not savaged the State’s economy. Each month’s disappointment is written off as due to some one-time event.

During the last three years, how many times did we hear “unexpected” when confronted with negative economic news?  It got to the point where the message went out to stop using the word “unexpected.” Of course, the only people caught by surprise were government stooges and the MSM-we knew it was coming.  Just as it is with California.

But, the problems for Califailure continue.

Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.

So, part of the decrease is caused by people leaving…due to the causes  mentioned above.  Of course, even though this type of thing happens very consistently, do they learn?

Not so much.

California Governor Jerry Brown’s answer to the State’s failing economy and crumbling tax revenue is to place a $6 billion tax increase initiative on the ballot to support K-12 public schools. He promises to only “temporarily” raise personal income rates by 25% on any of the rich folk who haven’t already left.

Thereby chasing even more of them away.

Of course, for the moonbats that consistently induce failure, the downfall is always someone else’s fault.  Even though it’s predicted, and even when it comes to pass as predicted, there is always some other factor that caused the doom.  No matter what, it’s never their policies, and if you point out the truth, you’re a racist, or something like that.

  • Unfortunately, when Californians leave to get away from the high taxes, they take their liberal ideas with them. Nevada used to be a great place to live and work before it was invaded by Californians.

    • So then, the failure is an infection, that is spreading?

  • When will the statists ever learn? Many have tried to tell that that raising taxes ends up losing revenue while cutting taxes increases it but they just can’t wrap their heads around this mo matter how much evidence is put forth. We can only assume that they understand this, but are relying on the fact that the people who vote for them don’t. So they are putting political gain ahead of reality in order to continue their class warfare rhetoric to gain more power, and that is what this is really all about.

    • Power is the goal. But what really bothers me is that so many voters ignore reality and vote for these jokers.

  • The repeated failure upon failure of liberals plans and various programs and their steadfast refusal to mend their ways makes one suspect that they’re actually aiming for failure, higher taxation, more regulation, bigger government and a lowering of the standard of living.

    • Either the destruction is intentional, or they are the dumbest people on earth.

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