Prop 23 Update — Exodus: California Tax Revenue Plunges by 22%
03/15/2012 21 Comments
Do you remember those Prop-23 vs AB-32 debates when we were assured by our local left that AB-32 and green jobs were the way of the future? That raising the cost of business with new regulations and more fees was the right solution for California. Obama and his lame stream press are claiming the economy is in recovery, but I guess not in California, and State Controller John Chaing keeps getting monthly reality checks.
Chriss W. Street writing at Big Government:
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.
During the Prop 23/AB-32 debates we told the warmers that AB-32 the Global Warming Solutions Act would drive business from the state.
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 Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.
It appears that AB-32 is doing what it was designed to do, kill the California economy while demonstrating how stupid our political leaders really are.
H/T to CalWatchDog for this story.