Monday, May 14, 2012

Einstein's Definition of Insanity: California

Gee, it's so surprising that stealing more and more money from the private sector -- to fund a bloated, unaccountable, massively top-heavy and unionized public sector -- would fail to close budget shortfalls.

Well, it's surprising if you're a Democrat, because they appear to be immune to facts, logic, reason and arithmetic.

Tax-hike austerity failing in California, just like Europe

I am having problems comprehending this Bloomberg headline: “Brown Tax Increase Gains Urgency as Deficit Rises to $16 Billion.” The story is even more puzzling:

California Governor Jerry Brown bet that a nascent financial recovery would lift the world’s ninth-largest economy enough to whittle down a $9.2 billion deficit. Instead, the gap has widened to $16 billion.

Today the 74-year-old Democrat will unveil his revised budget and explain what additional spending must be cut. Tax collections have run $3.5 billion below what he calculated four months ago. Spending has grown $2 billion above projections... The new deficit estimate increases the urgency of the governor’s plans to increase income taxes on some earners to the highest in the nation, and boost sales levies that are now more than any other state.

The plan would temporarily raise the statewide sales tax, already the highest in the U.S., to 7.5 percent from 7.25 percent. It would also boost rates on income starting at $250,000. Those making $1 million or more, now taxed at 10.3 percent, would pay 13.3 percent, the most of any state.

Wait, taxes are rising and revenues are falling. So obviously the solution is even more taxes? Who’s running the show over there, the IMF? So the state with highest sales tax in America would also have the highest income tax in America?

As it is, California ranks 48th in the Tax Foundation’s State Business Tax Climate Index. The California Dream has become the Golden State Nightmare.

As I predicted in 2011, Governor Moonbeam will soon be a thrice-failed state executive.

For unless Jerry Brown discovers a flock of gold-nugget-crapping unicorns, his strategy of crushing society's most productive citizens will simply drive them out of the state.

Which is why I published the "California-to-Texas Translation Guide a while back.


UpChuck.Liberals said...

Oh damn now you went and blew it. I've got a herd of gold crapping Unicorns, with the rare rainbow horns. Now Moonbeam is going to take them. Thanks for nothing, I almost had enough to get out of this loony bin.

Anonymous said...

There's nothing new in this place; I live here.
I don't have enough to get out and, live somewhere cheaper.The rents are out of this word.

I do have an issue with your report though: We all currently pay a sales tax on everything we buy in the store of 9.5% and, not the 7.5% as stated.
If it's an oversight, could you pls correct it? thanks

Whitehall said...

Thanks, LA Times, for that bogus housekeeper scandal against Brown's opponent, Meg Whitman, during the last election.

It is not ALL Jerry Brown's fault. The Democrat-controlled legislature is equally to blame.

Sales taxes at the cash register are a combination of a state base and local adders from county, city, and special districts. For example, in Santa Clara County we assessed ourselves extra to pay for public transit, including a light rail system that only collects 10 cents from the fare box for every dollar of operating costs.