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.
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 time 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.