California jacks up taxes, tax revenues fall…

Economic muggles in California are very, very confused.

The State of California experienced a decline in its revenue as several of the high income earners have relocated to other states, and have also relocated their businesses out of state. This led to a decline in corporate and income tax revenues by more than $1 billion.

With the expected increase in revenue to be derived from the passing of Prop 30, state bureaucrats increased deficit spending beyond the state’s $6 billion annual tax increase. The Department of Developmental Services and the Department of Health Services increased its spending in November by over $1 billion in comparison to its spending last year.

As a result of the decline in tax revenues collected, and the increase in spending, California’s deficit increased to $27 billion for the first five months of this fiscal year.

Compare to Texas.

The state comptroller estimates that Texas will generate $96.2 billion in general revenue in 2014-2015, a major jump in tax collection from the last two-year budget cycle.

Texas’ economy is humming again after lawmakers in 2011 wrote a cut-to-the-bone budget as the nation lurched out of the Great Recession.

At the time, unemployment in the state was the highest in a decade and the Legislature faced a $27 billion shortfall. But unemployment now is at a four-year low of 6.2 percent, sales tax receipts are skyrocketing and money is pouring into state coffers…

You all know what is coming, right? A bailout of states like California paid for by states like Texas. A massive federal government mediated transfer of wealth from the Lone Star State to La La Land is in the works. Wait and see.

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15 Responses to California jacks up taxes, tax revenues fall…

  1. Greg B says:

    And I was having SUCH a good day.

  2. rj says:

    Heard on the radio on the way home, Gov Rick addressed the legislators on the first day ot their new session, told em just because revenue is up don’t think ya’ll can spend it all.

    muggle rinos everywhere were befuddled

    • R.D. Walker says:

      Gotta save that surplus to send to California and Illinois. Don’t feel like the Lone Ranger. Iowa has a surplus too.

  3. jacksonsdad says:

    You’d think they’d learn one day but they never do. Everything they do precipitates unintended consequences (which WE, btw, futilely warn them about) and yet… time after time… they are completely blindsided when the counter inevitably comes.

    Nobody could be so wrong so often by accident…

  4. James says:

    Fuck California.
    California is a blue state.

  5. TN-Cat says:

    RD is correct. It will happen. At that point we are no longer on the slippery slope but all the way in the gorge.

    Its like letting a shopaholic control the family budget. Doomed.

  6. Greg B says:

    Let me apologize for the shithole state I live in.

  7. notamobster says:

    I’m telling you, it’s in their nature. The majority of liberals aren’t capable of understanding these ideas which we find to be so elementary. They will need to be forced to live our way.

    Unfortunately, too many of the politicians have the same disease.

  8. Rockheim says:

    Here’s how this will pan out.. It will be revealed that the REAL problem is that they didn’t raise taxes high enough.. That their lack of being bold in the face of this crisis was partly to blame. But the biggest part of the problem is that they couldn’t go for their bold move because this small increase is all they could get past the intransigent conservatives blocking their way..

    • Greg B says:

      Oh that’s all over now. Frikkin dims have a super majority in the state legislature. Screwed nine ways to Sunday.

  9. fubar says:

    “You all know what is coming, right? A bailout of states like California paid for by states..

    this is why there can never be a physical division in the country of us. vs. them.
    They can’t survive on their own.

    • Rockheim says:

      That’s what I’m thinking. I honestly believe that the endgame plan for both Illinois and California is to wait for the collapse of thier states and then be bailed out by the fed.
      Neither state can fix their issues. Neiter state is making any substantive moves to address them. In fact.. Both states are deliberately enacting plans to make things worse and continue along the status-quo line.
      Planning for a bailout is the only thing that makes any kind of sense.
      And the real bitch of it is this.. They’ll get it.

      • notamobster says:

        Of course they’ll get it. That’s why elected moonbeam. They knew he was the giver of free candy. It’s also why they continue to double down.

        Any bets on austerity measures when they get their bailouts?

  10. Matt says:

    What this horse needs is some more turpentine.