Truth Before Dishonor

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Posts Tagged ‘California collapse’

Taxes and the Pyrite State

Posted by Dana Pico on 2013/01/13

From

Jerry Brown: California Will Have Surpluses

That’s what he says:

After years of red ink, Gov. Jerry Brown said on Thursday that California’s $96.7-billion general fund is now poised to end next year with a surplus, thanks to years of deep budget cuts and billions in new taxes approved by voters last year.

“We achieved the position we’re in because of tough cuts … and then the people voted for taxes,” he said. “We broke the logjam by going to the people.”

Schools will be the big winner in the governor’s new spending plan, receiving $56.2 billion in state funds, an increase by $2.7 billion over the last year. That funding is set to jump to more than $66 billion by 2016.

The budget also dedicated an additional $350 million to the state’s public insurance program, Medi-Cal, to help implement President Obama’s healthcare law.

Brown’s budget predicts only the second budget surplus in the last decade, with an $851-million surplus projected at the end of the 2013-14 fiscal year — if all his proposals are approved by lawmakers.

Jerry Brown says we will have surpluses. I say we will not.

We’ll see who is right.

The boldfaced parts were by Patterico commenter Taney O’Haley, who said that it sounded like wishful thinking to her.

Donald Douglas referenced an article from Investor’s Business Daily which pointed out that the overwhelming majority the voters gave to the Democrats puts the restrictions under Proposition 13 at risk, and that there are already at least two proposals in the legislature to weaken it:

Already, state Sen. Mark Leno wants to put a measure on the ballot to lower the two-thirds vote threshold for school district parcel taxes to 55%. State Sen. Lois Wolk introduced a bill that would ask voters to drop the vote threshold to 55% for library parcel taxes and bond measures.

In the Assembly, Tom Ammiano plans to reintroduce a bill seeking to revise the definition of an ownership change that triggers a new business property assessment. Voters’ OK isn’t needed. Even if the bill stalls, as it has in the past, business owners fear that its goal — squeezing more tax money from commercial property — will surface in other proposals, some with better odds.

The tax increases approved by the voters in November were temporary increases, adding a 0.25% increase to the state sales tax, and creating three new brackets for the most productive Californians, lasting for seven years. For a single Californian earning $500,000 or more, the new 12.3% marginal rate, combined with the new federal top rate of 39.6%, means that 51.9% of his earnings over the thresholds will be seized just in income taxes alone. If his earning power is portable — and for many of California’s top producers, it won’t be — moving to a state like Texas or Florida, which have no state income taxes, is a completely rational economic decision.

How many will? We can’t know yet, but we’ll see in two more years, when Governor Brown’s projection of a balanced state budget is either realized, or it is not.
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Cross posted on THE FIRST STREET JOURNAL.

Posted in economics, Tax | Tagged: , , , , | Comments Off

Dying California Cannibalizes Itself

Posted by John Hitchcock on 2012/11/07

I have written multiple articles chronicling California’s Leftism-caused death throes. Yesterday, Californians, in their great wisdom, have decided to cannibalize themselves, (HT Patterico) devouring whatever healthy parts they had left. As businesses and working families have been fleeing the state for healthier locales, Californians have just finished voting to raise income taxes on the most productive of what’s left, raise corporate tax rates for the businesses which haven’t yet fled, raise sales taxes. Californians have also voted not to curtail Public Employee Union power, that power that has already caused multiple California cities to declare bankruptcy. What does this mean for the once-great state of California? It means more business closures. It means more flight of the producers out of the state. It means less tax revenue for the state. It means higher unemployment, higher poverty rates, more personal and corporate bankruptcies. It means more cities going bankrupt.

And this time, it also means fewer places to run to. Because the next four years will be Sheol for all of the US, as Obama exacts revenge on everyone who stood in his Socialist way (meaning Conservative states and Conservative people) as he unleashes his bureaucrats to write all manner of growth-destroying laws, free of the need to even consult the US Congress.

The next four years are going to be a very bumpy ride for all of us, but never so bumpy as the ride Californians, Illinoisians, Marylanders, New Yorkers are going to take.

Welcome to the Socialist caused Sheol, folks.

Posted in economics, Liberal, Obama, Over-regulation, Personal Responsibility, politically correct, politics, Socialists, society, Tax | Tagged: , , , , , | Comments Off

Maryland Follows Illinois And California Down The Toilet

Posted by John Hitchcock on 2012/07/09

Truth Before Dishonor has provided multiple articles following the tax-and-regulate schemes of Illinois and California, and the resultant business and people flight away from those Leftist-run states to far more tax-friendly states. We have also shown how the tax-friendly states have been far more economically successful than the Leftist tax-heavy states, in an article Le-gal In-sur-rec-tion named “Post of the Day”. We noted that Illinois’ Democrats — in a move showing even they know that tax increases are economically harmful — provided a major corporation with a 100 million dollar tax credit in order to keep the corporation in the state.

Now, from Hot Air comes the news about Maryland’s own tax-payer flight from high taxes. Yes, Maryland created a confiscatory “millionaire surtax” and, surprise of surprises, Maryland’s wealthy fled the state to places like income tax-free Florida. So, the “soak the rich” tax increase caused Maryland to lose tax revenue in huge chunks. Their decision to raise tax rates on the productive caused them to lose tax dollars in the coffers! Just like we TEA Party commonsense Constitutional Conservatives declared would be the case! Imagine that.

In other economic news, the 17 states that elected Republican Governors in 2010 all saw their unemployment rates drop, and at a faster aggregate rate than the nation as a whole, while the Democrat side cannot say the same thing. “Unexpected” by the “expert” economists, I’m sure.

It’s very clear which side is the more economically and budgetarily successful, so if you’re interested in improving our nation’s economic condition or budget condition, there is only one Party for which to vote. And they ain’t the donkeys.

Posted in Conservative, economics, Elections, Liberal, Philosophy, politics, society, Tax, TEA Party | Tagged: , , , , , | 4 Comments »

More Bad News For Wisconsin Democrats

Posted by John Hitchcock on 2012/05/14

The news coming out of Wisconsin continues to be bad for Democrats and good for the state. I have previously reported on the tens of millions of dollars Wisconsin schools have saved, with many schools going from deficit to surplus without raising taxes (in fact, property taxes were lower for the first time since 1999), while Democrats and Union thugs have spent tens of millions of dollars trying to rescue their tax-payer funded multi-million dollar cash cows and freebies, and used violence, threats of violence, destruction of public and private property in the process. I have also previously reported on the fact that Wisconsin has had its most improved economic forecast since 2003 and that its economic forecast improved more than any other state, after the Walker Budget was put in place.

Here’s what I said regarding the tens of millions of dollars Democrats and Union thugs spent in vain in Wisconsin in 2010 and 2011:

[Allahpundit] quotes that site I refuse to link (if I can avoid it) discussing the fact all those outside resources won’t be available to Recall Governor Walker in 2012 because there is the Obama campaign that needs fed, a US Senate campaign that needs fed, many other political races in Wisconsin that need fed, let alone all the campaigns across the other 49 states that need fed. After spending tens of millions of outside, Union dollars in 2010 and 2011 with next to nothing to show from it, there will be too many other needs in 2012 to be focusing in on a single Governor.

I previously wrote about the economic improvement of states that went from Democrat control to Republican leadership compared to the economic deterioration of Democrat controlled states. Multiple articles can be found in the TBD archives covering the economic disasters of Liberal-owned California and Illinois.

Well, Democrats have even more bad news coming out of Wisconsin. It seems the analysts were wrong about Wisconsin’s budgetary surplus. They underestimated it in their forecast. Wisconsin will have an even larger budgetary surplus than forecast. Without tax increases. In fact, with reduced taxes. Even as Wisconsin’s taxpayers had to foot a multi-million dollar bill to repair all the damage the Democrats, Union thugs, Occupods criminally did to public property. As Wisconsin’s economic forecast has improved more than any other state (as a result of flipping from Liberal Big Government tax-and-spend to Conservative small government restraint). As I have said many times before, these expert analysts are always wrong because they use static models and don’t account for a change in behavior that results from a change in tax and/or regulation policy. Just like the severely worsened budgetary outlook the Editor of The First Street Journal pointed out for the failed State of California. While the Republican agenda has improved the state of the State of Wisconsin, the Democrat agenda has worsened the state of the State of California. And that’s bad news for Wisconsin Democrats. They cannot have economic conditions and budgetary conditions improving while people are doing the opposite of what the Democrats want.

And they definitely cannot allow for the public to find out the Conservative approach is far more successful and liberating than the Liberal approach. Oops, too late. With the Conservative grass-roots giant very much awake, Liberals no longer have the ability to keep the news away from the people. And that leads to the most recent, and very terrible news (for Democrats) coming out of Wisconsin today. Polling shows Governor Walker with a very large 9 point lead over his Democrat challenger, who had raised taxes and fees in Milwaukee while simultaneously making Milwaukee’s economic condition worse (imagine that). To top it off, as I predicted, money is not coming in like Democrats want and need.

Update: Greg Sargent reports that Wisconsin Democrats are going public with their anger over a lack of support from the DNC:

“We are frustrated by the lack of support from the Democratic National Committee and the Democratic Governors Association,” a top Wisconsin Democratic Party official tells me. “Scott Walker has the full support and backing of the Republican Party and all its tentacles. We are not getting similar support.”

“Considering that Scott Walker has already spent $30 million and we’re even in the polls, this is a winnable race,” the Wisconsin Dem continues. “We can get outspent two to one or five to one. We can’t get spent 20 to one.”

According to the Wisconsin Dem, the party has asked the DNC for $500,000 to help with its massive field operation. While the DNC has made generally supportive noises, the money has not been forthcoming, the official says — with less than a month until the June 5th recall election. The DNC did not immediately respond to a request for comment.

It apparently doesn’t look winnable to the DNC, which tells you all you need to know about the polls on which WI Democrats rely.

After spending tens of millions of dollars trying to get rid of the people who have made Wisconsin better for Wisconsinites, and failing miserably, some of the outside spigots are getting turned off. Those outside spigots have a lot more than just Wisconsin to worry about this year, as the Conservative grass-roots continue marching on, saving this country from certain economic disaster.

Posted in Conservative, economics, Elections, Liberal, media, Philosophy, politics, society, Tax, TEA Party | Tagged: , , , , , | 2 Comments »

Flee California Now!

Posted by John Hitchcock on 2012/04/21

I previously wrote about the massive amount of businesses fleeing California. I even noted the mega-billions in tax revenue California lost as people — not businesses — fled the Pyrite State. Well, there’s more news about just who is fleeing California. And it’s those very people who will be necessary to turn California around: the young married couple and their children. From The Wall Street Journal (care of The First Street Journal) comes the corroboration.

Joel Kotkin: The Great California Exodus

A leading U.S. demographer and ‘Truman Democrat’ talks about what is driving the middle class out of the Golden State.
By ALLYSIA FINLEY

“California is God’s best moment,” says Joel Kotkin. “It’s the best place in the world to live.” Or at least it used to be.

Now, however, the Golden State’s fastest-growing entity is government and its biggest product is red tape. The first thing that comes to many American minds when you mention California isn’t Hollywood or tanned girls on a beach, but Greece. Many progressives in California take that as a compliment since Greeks are ostensibly happier. But as Mr. Kotkin notes, Californians are increasingly pursuing happiness elsewhere.

Nearly four million more people have left the Golden State in the last two decades than have come from other states. This is a sharp reversal from the 1980s, when 100,000 more Americans were settling in California each year than were leaving. According to Mr. Kotkin, most of those leaving are between the ages of 5 and 14 or 34 to 45. In other words, young families.

As “they” say, RTWT. But some quick math. 100,000 more Americans moving into California than leaving during the 1980s makes 1,000,000 American “profit”. The “loss” of 4,000,000 since the 1980s leaves the accounting books for the past 30 years at a 3,000,000 American soul “loss”.

California has less than 60 million souls. And far less than that number of actual “legally here” souls. And even fewer American souls. For over 4 million souls to vamoose, it would take 6-2/3 percent reduction in American Citizen population over 20 years. Since California has seen a nominal increase in population since Y2K, that means far more than 6-2/3 percent of the total already living in California was added to California by the foreigner influx. Commenter Hoagie’s wife (God bless her soul) just this week became a US Citizen. And she is arguably more Conservative than I, as she grew up within 60 miles of the DMZ. But she differs from California’s immigrants in that she came here legally and she loves the US, while the lion’s share of California’s immigrants are in the US illegally and have no fealty whatsoever with the US. And, contrary to Hoagie’s wife June, it is illegal for them to vote. But they provide a massive amount of support for allocating California’s 53 Representatives to Congress.

Alright, I went on a tangent there for a moment. I’m back. California is sinking into the abyss. Rapidly. California is shedding employers at an alarming rate. And the people California needs to turn California around? They’re fleeing California, too.

What does all of this mean? It means that, in California’s time of greatest need, those who are most able to rescue California have either already left or are in the process of leaving. There was a very popular game back in the 1980s where you spun a marble in a funnel and tried to time its drop before releasing your own marble. The closer you got to the drop point, the more points you scored. As anyone who ever played that game knows, the closer that marble got to the end-point, the faster it spun. Also, there was no telling when that marble would actually give up the ghost and enter its final fall.

This is California. It will fall. It will collapse. It is only a matter of timing. And the responsibility for its fall rests four-square on the shoulders of the residents who continue to elect radical Socialist Democcrats as the people’s lives become evermore unsustainable.

California is collapsing. Those who could save California are fleeing the collapse. That means California will collapse that much sooner. That means even more people who could possibly save California will flee to other states. That means California will collapse that much sooner. That means even more people who could possibly save California will flee to other states. That means California will collapse that much sooner. That means even more people who could possibly save California will flee to other states. … … … …

Anyone else see a pattern?

UPDATE
The Wall Street Journal article, written by a woman, made its way into Hot Air Headlines and got far more comments than normal.

Posted in economics, Elections, Liberal, Over-regulation, politically correct, politics, society | Tagged: , | 5 Comments »

 
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