California revenue declines since passage of Prop 30

[mocgator]

Wait... raising taxes reduces tax revenue???? Wow... who knew....

http://www.examiner.com/article/california-revenue-declines-since-passage-of-prop-30

After Proposition 30 passed on November 6, 2012, the State of California experienced a decline in the total state revenue for the month of November. California State Controller John Chiang reported that the total revenue for the month of November declined by $806.8 million, which is 10.8 percent below budget.

The State of California experienced a decline in its revenue as several of the high income earners have relocated to other states, and have also relocated their businesses out of state. This led to a decline in corporate and income tax revenues by more than $1 billion.

With the expected increase in revenue to be derived from the passing of Prop 30, state bureaucrats increased deficit spending beyond the state’s $6 billion annual tax increase. The Department of Developmental Services and the Department of Health Services increased its spending in November by over $1 billion in comparison to its spending last year.

As a result of the decline in tax revenues collected, and the increase in spending, California’s deficit increased to $27 billion for the first five months of this fiscal year.

[Dreamliner]

Uh-oh, that didn't work. Time to raise taxes some more!

[rivergator]

I'm guessing the Examiner story is wrong, again. Isn't it basically like Bleacher Report, where anyone can post something?

[Gatoragman]

Guessing?

[rivergator]

Guessing?

Of course not.

[Gatoragman]

Disproving link?

[wgbgator]

You realize that almost no one has paid income tax for 2012 yet, right? Prop 30 is retroactive to Jan 1 2012. But don't let that stand in the way of a good story. Maybe check back in a year or so.

[rivergator]

Disproving link?

As always, I'd recommend you guys do a little bit of research rather than finding something, anything from an unknown source and claiming it's true because you want it to be.
1. Revenue didn't decline by $800 million as the piece says. It's wrong.
2. It had nothing to do with tax hikes that were approved Nov. 2. Sales tax hike didn't go into effect until January and receipts were above projections anyway. Income and corporate taxes were below expectations because:

State budget writers assumed that Facebook insiders would sell a large batch of stock in November at $35 per share, resulting in a tax windfall for the state. But those insiders executed their transactions a month early, state officials say, resulting in more money than expected in October but far less in November. Not only that, but until late November, Facebook shares had been trading below $25 per share.

Those factors contributed to California missing its November personal income tax target by $842.5 million, or 19.0 percent. By comparison, the state exceeded its October target by $378.4 million.

California also paid out an unexpectedly large number of business tax refunds, contributing to a $187.8 million loss in corporate tax revenues for the month. Sales taxes were $99 million above expectations.

Read more here: http://blogs.sacbee.com/capitolalertlatest/2012/12/california-revenues-lag-due-to-facebook-corporate-refunds.html#storylink=cpy

Seriously, did you guys really believe that piece that Moc posted? Really believe that after the vote passed on Nov. 6, a bunch of companies up and moved out of state so fast that they didn't pay any tax for November?

[Dreamliner]

I'm relieved to hear this. Maybe California will leave taxes sky-high, for at least another year before they raise them even higher. California already had the highest state sales tax in the US, the third-highest state income tax, the highest gas taxes in the US and the highest electricity rates.

Not to say that there's not more to be milked. And they will.

[PSGator66]

I am sure it can be proven since this should be public information.

[ThePlayer]

California's loss is Texas' gain...and Colorado's gain...and Nevada's gain...and Arizona's gain.

[dangolegators]

Another Moc thread, easily debunked.

[Gatoragman]

Not saying your not right River, but you post a link to a blog? Really? That is comical as a source to debunk someone else's link.
Just sayin!

[rivergator]

Not saying your not right River, but you post a link to a blog? Really? That is comical as a source to debunk someone else's link.
Just sayin!

The blog is from the Sacramento Bee, written by one of the Bee reporters on the state capitol beat. It's not just somebody saying something on a message board.

[Gatoragman]

No it is someone else just saying something on there own message board. I get that a new law passed in November couldn't possibly have that big of an effect at this point, I am just tired of the fact that some links to some sites are totally crap while others to the same kind of site with ja different view are touted.

[rivergator]

No it is someone else just saying something on there own message board. I get that a new law passed in November couldn't possibly have that big of an effect at this point, I am just tired of the fact that some links to some sites are totally crap while others to the same kind of site with ja different view are touted.

I'm not sure why you consider the daily newspaper in the capital city "just their own message board."

[reformedgator]

Businesses have been leaving Ca for sometime. Who can blame them. Neighboring Nevada has been more than happy to have them relocate.

[Dreamliner]

For whatever reason, for the first time in five years more people are moving to California than moving out of California. Also, fewer illegals are coming in. Population is now projected to reach between 43 and 46-million by the end of the decade. :jeez:

[VAg8r1]

Anyone actually read the linked story?
After Proposition 30 passed on November 6, 2012, the State of California experienced a decline in the total state revenue for the month of November. California State Controller John Chiang reported that the total revenue for the month of November declined by $806.8 million, which is 10.8 percent below budget.
With the exception of the land of the conservative entertainment media complex, I'm not sure how it is possible to draw a conclusion based a single month's data.

[rivergator]

Anyone actually read the linked story?

With the exception of the land of the conservative entertainment media complex, I'm not sure how it is possible to draw a conclusion based a single month's data.

I think it's pretty obvious the initial story was completely bogus and that anyone who believed it is extremely gullible.

[GatorRade]

Wait... raising taxes reduces tax revenue???? Wow... who knew....

If only we dropped taxes to zero, then revenue would go through the roof.

[wgbgator]

If only we dropped taxes to zero, then revenue would go through the roof.

Whoah, slow down there Karl Marx, we don't need the state going on a spending orgy with the kind of revenue a 0% tax rate produces. .

[Dreamliner]

Whoah, slow down there Karl Marx, we don't need the state going on a spending orgy with the kind of revenue a 0% tax rate produces. .

How could the State go on a spending orgy if everybody took their money back ?

[dadx4]

You liberals crack me up. The wealthier business leaders are leaving in droves in California and other liberal states. Ask yourself this my liberal friends, why would someone put up their own money and all the risk to start a business, work 80-90 hour weeks to get it to be successful just to have the government take half of what they earn. That's just stupid. Any business owner in his right mind would tell the government to #$^@#%&!$@!!>.