Exodus: California Tax Revenue Plunges by 22%

Exodus: California Tax Revenue Plunges by 22%


Declining tax revenues are due to business and people
running away from California.

That's according to State Controller John Chaing.

State Controller John Chaing continues to uphold the California Great Seal Motto of “Eureka”, i.e., 'I have found it'. But what Chaing is finding as Controller is that California’s economy as measured by tax revenues is still tanking. Compared to last year, State tax collections for February shriveled by $1.2 billion or 22%. The deterioration is more than double the shocking $535 million reported decline for last month. The cumulative fiscal year decline is $6.1 billion or down 11% versus this period in 2011.

While California Governor Brown promises strong economic growth is just around the corner, Chaing proves that the best way for Sacramento politicians to hurt the economy and thereby generate lower tax revenue, is to have the highest tax rates in the nation.

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. .......

California Dream'n

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.

The article explains many other excuses reasons for the flights outbound !

Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

This is easy.

Just raise taxes.

Raise taxes = more money, right?

What could go wrong, raise away.

I was at a Wal-Mart the other day buying a big case of Redbull, and the guy outside had a table and he wanted me to sign a petition to "raise taxes on the rich" to save education. He had 3 different versions.

I always say no, but my neighbors always out vote me...

Another older story 2010

“It’s very difficult to get those numbers,” he told me of jobs leaving California because of high taxes and regulations. The problem, he said, is that most firms don’t advertise why they quit California. And many firms that stay here expand in other states or countries. But because they keep their headquarters and other operations in California, they don’t want to antagonize local people by explaining why jobs were created elsewhere.

This is from 2010...

The exodus of known capital and jobs is the “tip of the Iceberg.” The losses are deeper than are recorded here. California is in an “economic state of emergency” that will only get worse because the state government shows no signs of being less hostile to business and because more companies will be leaving. To the degree I know about some of those companies, under Non-Disclosure Agreements there is no way I can discuss them in advance. In any event, the exodus has reached such an alarming point that California ought to declare a “state of economic emergency” just as we have emergencies resulting from floods, fires and earthquakes. Raising taxes or creating new regulations should be out of the question.

I don't know. Are people leaving or are they just not filing because they have no money? And the ones that are may be falsely doing so. Can you blame them?

Govt. and Banks are breaking people. Time to stand up and say no because when there's no more blood to give...

Same results.

Peace

reply to post by jude11


They are leaving. I know the owners of two companies that have moved personally. One is a billionaire.

Why would any intelligent business person stay where they were treated badly and taken advantage of? Expect the exodus to increase. California's troubles are only just beginning. The Feds can no longer help much and soon they won't be able to borrow at all.

You cannot be all things to all people without going bankrupt. It's just a fact of life. The leaders there know this, they only care about buying votes and not the States future. When it gets to bad, they will leave themselves.

I ran away from California 11 years ago. I won't lie, I miss the beach and the mountains, but I don't miss the high state taxes, the high sales tax, the incredibly expensive vehicle registration tax (I was paying, on the average, about $700 a year for a vehicle that costs me $68 a year here in Texas), and the way the schools were going out of their way to teach the Spanish-speaking children at the expense of the English-speaking children.

Right now, California is no place to be if you're a middle or lower-class person on the socio-economic ladder. High unemployment, high taxes, high utilities....no wonder everybody there gets high.

Hotel California is now a broken-down dump. The California of my childhood is gone.

reply to post by xuenchen


Now's a great time to "tax the rich" and make them "pay their fair share"!

/TOA

My Mother in Law lives here in ID, but maintains her cosmetologist's license in CA, our home state.

The State of California, with no notice or warning, levied presumed business taxes against her and pulled 2+ grand out of her account based on their supposition that since she was licensed in CA, she must have worked and made some specific amount of money.

THAT is how bad California has gotten. They're using every desperate last gasp attempt to get cash. Won't be long before they come kicking down doors and taking jewelry and coin collections.

reply to post by blamethegreys
[more

Something similar happened to me after I relocated to Texas. They took every last cent out of my meager checking account, so all my checks I sent out for my monthly bills bounced. They said I sold a house in Cali and owed $16,000 in capital gains tax. I went and proved that I actually took a loss on that sale, but they wouldn't return my money. They said there was probably something else I owed so they would keep my $850 anyway. I didn't have the money to hire a tax attorney at the time.

Plus, I owed over $500 in bounced check fees to B of A. I couldn't hold a checking account for years because of this. When I remarried, my husband insisted on using B of A. They took $500 out of my account later that year saying I owed it.

In a nutshell, I was out $1350 for something I never owed. Cali will chase anybody associated with it to the ends of the earth and clean out your bank account because they are thieves and are desperate to keep their rotten heads above water.

The whole state could collapse into the ocean for all I care.

It would take a LOT for me to move to California.. Sadly for some of us California comes to us (example, Oregon) where their stupid (putting it nicely) policies destroy businesses.

I wish I could understand the mentality that, in times of the worst recession in living memory the government raises taxes on the middle class, higher income earners and businesses at all levels.

Stupidity to an extreme.

As goes California, so goes the nation.

California, Michigan, Illinois. Is anyone else seeing a trend? The attempt to over-reach by the government, be it local, state, federal is hurting everyone.

This is class warfare. They will blame the wealthy for Californias woes and not their own spending and lack of foresight.

Hate to say this, but we all "told you so".

reply to post by jude11


There is both an exodus from California and yet another wave of migration to California.

The long standing middle-class whites have been fleeing the state..

From 2000-2008 the white population (mostly middle income) left the state. There was a decline of 500,000 whites.

Yet the population grew by 4,000,000 people. Mostly poor Hispanics who moved there illegally.

Race in this case does have something to do with it.. whites made up California's huge middle class, but they also owned assets that exploded in price over the last decade. They could sell their house in Cali and buy one in cash elsewhere.. so white Cali's fled to Nevada, Washington, Oregon, Texas and elsewhere.

Hans Johnson, a demographer at the Public Policy Institute of California, said white women in recent decades have tended to pursue higher-education degrees and stay in the workplace, leading them to have fewer children. The white population is now "below the replacement" level, Johnson said. "They're simply not replacing themselves."

The median age among California's whites is 44, while the median age for the Hispanic population is 28, according to the study.

Read more: www.sfgate.com.../c/a/2010/06/04/MNSG1DQ1BL.DTL#ixzz1p3vkZxAz

So what happens to state that sees a flood of middle income older citizens, many of whom owned prosperous businesses, leave the state in droves? And what happens when you couple that with an explosion of young migrant workers with little education and no asset wealth replace those middle income earners?

You see a HUGE influx of social services being used that drain the system while those that supported it dropped significantly.

Normally however this wouldn't be an issue.. the Hispanics and Asians that are the main immigrant populations would fill the void of middle income workers, create their own businesses etc..

But California is so hostile and so expensive that it takes a lot more work to save the money or get the loans to start a business, not even including the massive amount of fees, paper work, regulations and taxes etc.. It's an example of Progressive Liberalism gone wrong.

I'm a business owner in Los Angeles.

I'll tell you the straight facts of what I see going on.

1) The number of receipts for business is going missing (unreported) because many here are fighting the local and Federal Government by hiding/lying about earnings altogether. The estimated "underground" economy (Illegal Immigrants) in Los Angeles County alone is staggering.

2) Other business owners are working and paying off the books. It's easy to hide and not regulated or audited.

3) High taxes, rents, overhead. Cost of 'doing business" here is unfair. yet the politicians here spend all of our money on public works and sectors.

4) Want a job here? Go PUBLIC. Work for the City, the State, the County. More and more are doing so, which means tax money for the Machine, and none to save.

5) Neighborhoods are falling apart. Which means customers with no money, downgrading in property values, and crime...all which are no good for business or ownership.

6) The Franchise Tax Board here is hostile to any business owner showing a profit. I've seen it first hand. It's like they HATE you if you succeed. The more you succeed the more they come after you until being John Q Citizen and honest at the game proves illogical. So you move out and take your innovation and skills elsewhere.

california is facing a 25 billion dollar deficit for 2012
texas is facing a 27 billion dollar deficit for 2012
www.reuters.com...

so how is texas better financially?

Originally posted by beezzer
As goes California, so goes the nation.

California, Michigan, Illinois. Is anyone else seeing a trend? The attempt to over-reach by the government, be it local, state, federal is hurting everyone.

This is class warfare. They will blame the wealthy for Californias woes and not their own spending and lack of foresight.

Hate to say this, but we all "told you so".

the trend??? we are still in a recession....texas, with its "business friendly" ways is going to be 27 billion in the red for 2012.....so add texas to your non-researched tea-party bias

hey maybe if we keep giving the biggest oil companies in the world more taxpayer funded billion-dollar subsidies they will create more jobs?....nah, the corporations have already taken 9 million jobs out of america in the last decade....it must be that great slave labor in china, so i guess that is what all americans should strive for.
all you business friendly tea-party people ready to make 1 to 2 dollars an hour? that's is what all those GREAT corporations are paying over there.

Originally posted by jimmyx


the trend??? we are still in a recession....texas, with its "business friendly" ways is going to be 27 billion in the red for 2012.....so add texas to your non-researched tea-party bias

You're blaming the recession on government over-spending?



Sure, I'll add Texas. Any type of government that spends more than it takes in, and adjusts by "taking more" instead of "spending less" deserves nothing less than my complete scorn.

Originally posted by beezzer

Originally posted by jimmyx


the trend??? we are still in a recession....texas, with its "business friendly" ways is going to be 27 billion in the red for 2012.....so add texas to your non-researched tea-party bias

You're blaming the recession on government over-spending?

Sure, I'll add Texas. Any type of government that spends more than it takes in, and adjusts by "taking more" instead of "spending less" deserves nothing less than my complete scorn.

well you certainly have the answer...just spend less than you take in....why don't you write up a DETAILED approach to cutting spending, i'm sure the government could use your expertise

The unintended consequence of the exodus will be the negative effect that the people who have left will have on the policies in the new counties, cities, and States to which they relocate.

There is some evidence of this on Colorado over the last 10 years as people from California migrated there programs “for the good of the children, poor, minorities (insert supposed oppressed group), etc.”, were on the rise as of course the taxes to go with them… Now they are leaving again after they have imposed their agenda.

These people for the most part are like liberal locusts – they come into a place and with their liberal ideology vote and support all manner of programs that cost money and necessitate in the raising of taxes. Liberal laws are enacted and will never be changed….

However, when that tax burden finally hits their personal threshold of “too much” they leave for the next place.

Often not even associating their own behavior with the final consequence of excessive taxation. The cycle repeats...ad nauseum.

It’s like a plague of liberals.

A sound money policy, a policy of letting small businesses GROW and HIRE without over taxation and high costs of business....allowing true FREE MARKET policies is the only way to have our great states like Texas and California come back from the brink.

In the not so distant future our States will collapse and Free Market advocates like me and many Paulies will say "I told you so". We are already there actually.

Government spending, over taxation, hostile to private business while expanding the Public Sector, rising costs of living, gas, energy, paperwork, bureaucracy....

WE TOLD YOU SO.

When will people learn?

Cali is going to tank if the current trend is followed. Governor Jerry Brown is a complete MORON who is in the pockets of special interests and the very people who are going to tank this State to save their arses. I'm seeing California go down first hand since childhood. And our elected 'leaders' do nothing but make it worse, and our moronic voters keep putting them in office.

FUBAR

A large part of this is caused by outsourcing manufacturing jobs while increasing the part our population. More people and less jobs = serious trouble.

reply to post by PaxVeritas

Though I don't live in California, but isn't the problem a plague of republicans? Didn't California have a republican Governor from November 17, 2003 – January 3, 2011? That seems like a lot of time in office to clean up the mess, when in fact things got worse. Yup, California will miss the dynamic duo!