They say that they definition of insanity is doing the same thing over and over, and expecting a different result. If that is indeed the case, California’s tax policies make them the official land of fruits and nuts, as they are proving the insanity axiom to be most true.
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.
So then, they raised taxes, and lost revenue. If one did something and it hurt, you’d think that they’d stop, or at least never go back for a repeat hurting. However, the electorate in California hasn’t shown that very basic level of what the rest of us would call “common sense,” or more simply…Duh! Since they don’t possess the sense of “duh,” they chose to double down on stupid, with the same results. Breitbart has the totally unshocking and completely predictable aftermath…
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.”
This one is funny, because the results were instantaneous. However, the reality remains-you tax something, and you usually end up with less of it to tax.
But don’t worry, it’ll be someone else’s fault, I’m sure.
H/T: Doug Ross