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California Has Gone Over the Fiscal Cliff.

Written by Gary North on September 24, 2012

California is a high-tax state. Revenues this year are down. Except for income taxes, they are down considerably. Corporate taxes have gone over the cliff.

This was reported by Mish Shedlock.This is great news. Even greater is the fact that the state is over budget by $3 billion.

Why is this great news? Because it will create a fiscal crisis while Jerry Brown is in office. I had to put up with Governor Moonbeam in 1975. In November 1974, he barely defeated my first college adviser, who was just as liberal. I left the state in December 1975. I had put up with his father’s policies in my high school and college days. Ronald Reagan smashed Brown’s attempt to be elected for the third time in 1966. I was always appreciative for that.

California is proving that Dr. Arthur Laffer is right about rising tax rates and falling revenues. He left California in 2008 to move to Nashville, where my daughter lives. I saw the handwriting on the wall 33 years before he did. The last timeĀ  we chatted was in 1975. We did not talk about Governor Moonbeam. We talked about important stuff, such as the Pennsylvania country music origins of Bill Haley and the Comets.

For more on California’s fiscal woes, click the link.

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9 thoughts on “California Has Gone Over the Fiscal Cliff.

  1. Governor moon beam should have the honor of being governor of the most recent state to declare bankruptcy.

  2. Calif, has'nt got a clue , when to stop aiding and giving to illegals. Schools free lunch keeps driving the cost up.Its the same as Obama , what country would give aid to a country, that we are fighting.Only the United States.

  3. It is so pathetic. California home to many millionaires and they can't pay the bills. Hilarious. AND they want more debt. Oh God stop, my sides are aching from laughter. Too funny. I hope we get some pics of how they all look without makeup when the state separates from the union because all their money & agenda's are worthless. The meek shall inherit the earth. Meek = the suffering. There is no entertainment from these hollywood libs anymore, no one watches them, their movies suck and they are commies. Buh bye hollywood! Be a better world without them anyway. More real. They are all fantasy land, la la la land, fake & phoney. Karma has a way of biting you in the butt at the most inopportune moment. Watch out, it is on it's way California.

  4. VoiceOfReason says:

    One of the greatest campaign slogans in American history was one that surfaced in a campaign when Moonbeam's father was the incumbent governor: "If its is Brown, flush it!"

  5. Texas Chris says:

    Most recent, but not for long. Illanois is right on their tail.

  6. Texas Chris says:

    lol, awesome

  7. California is a fiscal laughingstock. But those idiots never learn, they just keep voting liberal Democrat. Keep going Cali, and don't come calling for a bailout,

  8. Nothing ironical about all of these states being run by democrats. Look what this president has done to the country, in just four years.

  9. there are so few sensivle people left there, most have gone to other places. So that leaves the unthinking masses bonded to the government tinteat for their "daily bread"…and voting to continue it. Funny things happen when other people's money runs out…. particularly amongst those relying upon "other people's money". Soon enough they will starve to death whilst praying daily to the government "give us this day our daily bread".