Despite Tax Increase, California State Revenues in Freefall

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.”

State bureaucrats immediately ramped up deficit spending far beyond the state’s $6 billion annual tax increase, with the Departments of Health Services and Developmental Services increasing this month’s spending by over $1 billion versus last year. The lower tax collection and higher spending drove the State’s deficit after the tax increase to $2.7 billion for the first 5 months of this fiscal year.

Read more from this story HERE.

  • DroneSheeple

    How about the $577 billion in hidden assets and investments?

    • Joe1938

      How about some details. Thanks, Joe

      • DroneSheeple

        How about reading a little bit more from the links at bottom of article? For example

        • Joe1938

          Thanks fr the link Drone.

  • raynbene

    How long before we have some CA city council member say – “we voted for you, obama, now bail us out ! ! ! ” ?
    It would be better for the world if Mexifornia just slid into the ocean, along with all the filthy, rotten democRATS, their voters, and their welfare slugs and illegals from wherever ! ! . . .This cannot go on forever ! !!

    • CincinnatiRIck

      Count on it…California will be demanding a bailout. It is already proven that milionaire flight is REAl…the UK has several years of experience now to document it and, anecdotally anyway, it is already starting in France as their wealthy are moving to Switzerland, Luxemburg and Belgium!

      • raynbene

        Which gives something of a boost to the local economies, if I’m not mistaken . .gosh, why can’t we do that here ??? Oh, wait – too many democRATS running the country . . .

    • rmwayne

      And you know damn well who the Kenyan communist would steal the money from. Those of us who live in the Gulf Coast red states. The whole west coast can slide into the Pacific as far as I’m concerned.

  • Joe1938

    Best and Worst Run States in the US
    The Top 5
    1. North Dakota, Red —— Best Run State in the US
    2. Wyoming, Red
    3. Nebraska, Red
    4. Utah, Red
    5. Iowa, blue

    The Bottom 5
    45. Nevada, Blue
    46. New Jersey, Blue
    47. Arizona, Red
    48. Illinois, Blue
    49. Rhode Island, Blue
    50. California, Blue ———— Worst Run State in the US
    CA Worst Run State in the US and it shows!

  • Joe1938

    Tax Exodus-5 States That Residents Are Fleeing
    **New Jersey:(blue)
    **California:(blue) <<<———-
    **New York:(blue)
    Note: They are all blue states!

    • rmwayne

      I certainly hope none of them come to Louisiana. The last thing we need are a bunch of left wing yankees coming here who are too stupid to see that their boy Obama is the real reason this country is falling apart.

      • Joe1938

        Yeah, I saw a couple left wing yankees in Many a while back. They were turning their noses up at fried okra! Can you believe that?!

        • rmwayne

          Good to see a fellow Louisianian in here Joe. Lake Charles here (almost a Texan) ha ha. Anyway, hope you send them back to New York, Frisco, Seattle or wherever they came from.

  • They need to go to Hollyweird and Rodeo drive to push their tax the rich agenda. I’m sure they don’t pay their fair share. You have those big Hollywood greats making over 30-40 million/picture. Let them pay 10-20 million in state taxes. Wonder how long it would take for them to move from California?

  • steve

    They invite all the illegal aliens to come to california, then they cry they don’t have enough money!

  • Bristled

    What do you expect when you recycle politicians like Moon bean Brown.

  • Paul In Orlando

    Joe Miller,
    Stop printing all these lies!! We all know if you tax the wealthy more and more, they’ll work harder and harder for our government and pay more and more taxes. We are ALL freaking happy to pay this loser, sorry asses, Socialist hoodlums more taxes. What you are reading about France, UK and other super tax countries are simply not true. People LOVE government. The bigger the better. The Romans and Hitler (and others)almost had it figured out. This time they’ll get it right.
    Does anybody know what country we can run away to, to be free? I am having a hard time finding one.