Despite Tax Increase, California State Revenues in Freefall

[Revmitchell]

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.

http://www.breitbart.com/Big-Government/2012/12/07/CALIFORNIA-STATE-BUDGET-GOES-OFF-THE-CLIFF

 

[Oldtimer]

From the article:

As panic spreads that goosing taxes on the rich may have created enough “tax flight” that the California will actually collect less taxes, there was welcome news that a business had committed to opening in the State. Executives of the 99 Cents Only Stores Inc. proclaimed they would be opening a new location in Beverly Hills on formerly posh Rodeo Drive.

On a national level isn't that part of why corporations fled this country? Corporate tax rates in other parts of the world are lower. People constantly talk about the mega corps and small business. What about business that is considered to be mid-size. How many more of them will be heading overseas if their tax rates go up?

 

[Revmitchell]

From the article:


On a national level isn't that part of why corporations fled this country? Corporate tax rates in other parts of the world are lower. People constantly talk about the mega corps and small business. What about business that is considered to be mid-size. How many more of them will be heading overseas if their tax rates go up?

As many as possibly can.

 

[poncho]

Is California really as bankrupt as its governor claims? Not if you believe in mathematics and accounting. As this story shows, California has hidden away $577 billion in assets, all revealed in CAFR documents (Comprehensive Annual Financial Report) that are becoming increasingly well-known.

California's government, you see, has two main funds in which money is kept. The first fund, which is bankrupt, covers all government activities and expenditures. But the second fund -- the hidden "slush" fund with $577 billion in assets -- holds all the money the government generates by conducting "nongovernmental" businesses and activities that aren't officially part of the government. This money is hidden from California's taxpayers who are repeatedly lied to and told they have to pay more in taxes to prevent the state from going broke.

Click here to see a complete listing of all the nongovernmental funds that Californians aren't being told about.

This list includes organizations and assets such as:

• Independent System Operator: $876 million
• The Economic Recovery Bond Sinking Fund: $484 million
• Receipting and Disbursing Fund: $16.6 billion
• State Water Pollution Control Revolving Fund: $3.1 billion
• Financing for Local Governments and the Public Fund: $5.2 billion

California's criminal government hides hundreds of billions of dollars in these funds, then uses that money to hand out juicy contracts to their crony friends and political supporters while financially soaking all the businesses and taxpayers in the state who are trying to make ends meet.

CONTINUE . . .
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