Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.
This is known as “bad luck.”
The Golden State’s “bad luck” continues to manifest as “unexpected” shortfalls in tax and fee collection. The Governor and the Democratic Legislature assumed that increasing tax rates and fees would increase state revenues, and are shocked to find that revenues are instead falling as marginal rates increase…
By Chriss W. Sweet | Breitbart’s BigGovernment
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.
But but… They raised the tax rates. They raised the fees. How can revenues go down?
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.
Shockingly, it would seem that a significant proportion of the high earning businesses and individuals are voting with their feet and relocating to states where they can keep more of what they earn.
Bad luck, that.