California Sinking… Who Knew?

Well, everyone who can add 2+2 and get 4 as the answer. When you make the producers the enemy and extort their hard earned money to pay for votes, the producers will find other avenues that are more friendly.

Despite Tax Increases, California Revenues In Freefall

By Chriss W. Street

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.”

In September through October, California unions like SEIU and the Teachers Union paid out huge dollars to advertise in support of prop 30. The tax the rich proposition. It was advertised as the only way to save our kids… As usual California voters believed the lies and voted to increase taxes on rich folks and add to the sales tax… Whoo Hoo!

It only took a month before the moving vans hit the road again. Several businesses closed shop here, several others laid off workers or cut hours. Rent on apartments is set to rise to cover the vacancies… What happens is pure economics, less people working less state revenue. But hey, who cares? The teachers and state workers are fine…

Pay very close attention to California in the next six months. California will be the catalyst for a crisis that will sink the national debt. CA is too big to fail and it will be bailed out by the nation. Who will vote for that spending increase? Well, there’s 55 seats in DC with California asses in them… How’s that?