Taxing the rich
they just leave.
SACRAMENTO – State Controller John Chiang today released his monthly report covering California's cash balance, receipts and disbursements in April, showing monthly revenues came in $2.44 billion below (-20.2 percent) the latest projections contained in the Governor's proposed 2012-13 Budget.
"The task of crafting a credibly-balanced budget has been made more difficult by a nine-month revenue shortfall of $3.5 billion," said Chiang. "Without a timely, financeable budget plan, the State will be unable to access the working capital needed to pay its bills later this year."The greater part of the April shortfall was caused by personal income tax receipts, which came in $1.96 billion below (-21.5 percent) projections. Sales taxes were also down by $445.8 million (-54.4 percent). Corporate taxes were also down, coming in $142.7 million (-9.3 percent) below projections.Year-to-date through April, total revenues were down $3.5 billion (-5.1 percent) from estimates in the Governor’s proposed budget. Leading that disparity was income tax, down $2.7 billion (-6.2 percent). Sales tax missed estimates by $411 million (-2.7 percent), and corporate tax receipts were down $464 million (-7.0 percent).
The State ended last fiscal year with a cash deficit of $8.2 billion. The combined current-year cash deficit stands at $19.2 billion. Those deficits are being covered with $12.8 billion of internal borrowing (temporary loans from special funds) and $6.4 billion of external borrowing.For more details, read April 2012's financial statement and summary analysis.
That's what's awesome about a republic....you can move from one state to the other.....so the states need to compete......and compete HARD.
I guess California's vaunted sunshine awesomeness isn't worth the huge financial cost compared to far lower cost basis and far less bureaucratic states.
It is not simply the heretofore loathed "rich", who are bailing out. A large number of the older cohort, middle-class, Baby-Boomers are retiring, and leaving the state. For those on a middling,fixed income, the CA tax system is especially onerous. On the plus side, they are fueling the economic, and more specifically, housing recovery in Arizona.Originally Posted by Flagg
Till it becomes law, than they must pay thier fair share! you can run but you cant hide.
American taxes has more loop-holes than Swiss cheese.
It's made more complicated with the redundant system at the state level.
The wealthy hires industry lobbyist to create the loop-holes, hires the tax lawyers to define them, and the accountants to use them.
So it is not so sunny in the Great Republic of California? People are leaving? Say it isn't so. This trend has bein on going since the internet bubble exploded. Only Union workers, homeless and Illegals are left.
Taking jobs away from one state and adding jobs at another does not change the national unemployment rate.
No one is taking anything. It is called voting with your wallet and one of the great things about a free republic.
Till it becomes law, than they must pay thier fair share! you can run but you cant hide.
Maybe they should raise their taxes. If they raise them high enough then not only will all bills be paid but there'll be a surplus.
Competition between states is a good thing......THAT'S what helps make America(and other places like Switzerland) great.
If one state stuffs up and makes some horrific mistakes, 1 or more other states can pick up the slack and offer better options and solutions......with reduced risk of those high value folks with money and skills from leaving the country and seeking their fortune internationally.
The USA is like Facebook......it's a closed system......with 50+ little semi-nation options.
You can move from one to the others and still stay within the system.
It encourages competition, efficiency, and innovation because it punishes lazy and lights stupid on fire.
California has been lazy and stupid and is now paying a very high price.
Other states are picking up the slack.
Moving jobs from a state that has excessive bureaucratic/tax/fee/regulatory friction to a state that has acceptable levels of friction is a good thing...it's healthy competition compared to unhealthy sloth.
You should have a look at Inc Magazine's website.......Inc is probably the best resource for small to medium sized business owners...the stories of small to medium sized businesses leaving California in recent years makes California sounds like an entrepreneurial Irish Potato Famine.
And since when did it become "taking"?
You make it sound like the jobs being "taken" are Californian "property"...the last time I checked they are the "property" of the employer and the employee....free to move when and where they like.
Where to locate depends upon what type of company, industry and markets.
Taxes are not usually not the primary consideration when it comes to locating a company.
There's transportation, real estate, educational resources, local job talent, access to markets, weather, etc....
High Tech and Biomedical tend to gravitate towards areas with high concentrations of techies and universities.
Logistics tend to opt for areas with multi-modal transporation nodes.
Consulting can be anywhere, but a major airport with direct fllights and frequency helps with time and money.
Ordie, let a state tax any industry to point to where it is no longer possible to make a profit and they will leave.
If another state is willing to make it easier to do buisness, IE less taxes, red tape, etc. and watch them leave.
Force a state tax on Sherm and watch him leave to a state that has no state tax.
And gresh.
Seems like lots of people I know are leaving the state. I was talking to this pool guy/plumber the other day who's moving to Oregon. He can't get any work cause I guess the state wont allow him to legally work on pools that don't have these expensive new pool filters. Because most people don't want them/care, he's not making any money. It's pretty much causing him to do everything under the table.
Whether it's taxes, or regulations like that.. it's all been rolling downhill for quite a while. California reminds me a junkie that needs to get their sh!t together.
How can one make one tax that one doesnt make any profit, when one taxes one on profit. If one doesnt makes a profit, he doesnt pays taxes either.
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