Friday, March 16, 2012

Producers fleeing California due to nutty policies

You mean producers do not like the products of their labor confiscated?

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.

The State Controller’s office did acknowledge that higher than normal tax refunds for February might have reduced the collection of some personal income taxes. Given that 2012 has an extra day in February for leap year, there might have been one day more of tax refunds sent out. But the Controller’s report shows personal income tax collections fell by $325 million, or 16% versus last year. Furthermore, leap year would have added another day for retail sales and use tax collection, but those revenues also fell during February-by an even larger $813 million, 25% decline from 2011.

The more likely reason tax collections continue falling is that businesses and successful people are leaving California for the better tax rates available in more pro-business states.

Everywhere in every place throughout history people flee confiscatory levels of tax. Who the hell in their right mind is going to go out and work or risk capital so that even if they overcome all the ridiculous regulations they get taxed to death. This of course will continue until the state of California collapses just as every other nutty high tax high regulation place has collapsed in the past.

So what is Governor MoonBeam's answer? Raise taxes of course!

California Governor Jerry Brown’s answer to the State’s failing economy and crumbling tax revenue is to place a $6 billion tax increase initiative on the ballot to support K-12 public schools. He promises to only “temporarily” raise personal income rates by 25% on any of the rich folk who haven’t already left.

Maryland and Oregon tried the same thing and they found out what California is getting ready to find out. You tax wealth and prodcuers and they leave, very simple. But that's what happens when the state is run for the benefit of the public sector unions and illegal aliens from south of the border.

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