Home / Taxes / Taxifornia Does It Again: An Extra $6 Billion a Year
Print Friendly and PDF

Taxifornia Does It Again: An Extra $6 Billion a Year

Written by Gary North on November 9, 2012

California voters have approved tax increases of $6 billion a year.

They will tax the rich.

The rich will leave.

I left in 1975. Art Laffer left in 2006. We had the samne reasons: too many taxes, too much business regulation.

I figured it out earlier.

Here is a recent report.

In the wake of the November 6 elections, voters have approved a number of contentious state initiatives, including a $6-billion-a-year bundle of tax increases sponsored by California Governor Jerry Brown. Proposition 30, a focal point of Brown’s administration, would increase the sales tax by 0.25 cent for the next four years, while raising income taxes on those earning more than $250,000 for the next seven years.

Specifically, the measure installs three new personal income tax brackets for high-income residents, and the wealthiest one percent — which includes those earning at least $533,000 a year in income — will account for nearly 80 percent of the tax hike. Those high-income earners will see their income taxes rise by 1.1 percent, while the bottom four-fifths of the state’s earners will see a tax increase of between 0.1 percent and 0.2 percent. . . .

California, or as the Pacific Research Institute refers to it as “Taxifornia,” harbors the highest personal income taxes in the country, and has higher sales taxes than all but four other states. Thanks to its daunting business environment, businesses and investors are migrating to other states in search of lower taxes and less regulations. Breitbart.com reported on this trend in an article earlier this year:

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 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs. . . .

According to Vranich, California has the most hostile business climate in the U.S., and Los Angeles is the worst city to launch a new business. Yet Governor Brown and more than half of the state’s voters have just boosted the burden on California businesses and investors, encouraging more of them to flee to states with greener political pastures.

Continue Reading on www.thenewamerican.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

20 thoughts on “Taxifornia Does It Again: An Extra $6 Billion a Year

  1. Califoria, you people deserve it.

  2. Goodbye California. I became a Nevada resident a few weeks ago. You can not be a state with a (soon to be) 13.3% top tax rate next to a state with no state tax and not expect a fleeing of tax revenue and businesses. Up and down my street here in Las Vegas many of my neighbors are here from California for the same reason. I own 2 businesses both original to California. One having just over 100 employees has been completely moved from California the second with about 30 employees has started to move.
    The state of California opens it's doors wide open with sanctuary cities and generous entitlements while at the same time businesses, high net worth individuals and investors flee. We grow weary of of paying the bill for politicians who purchase their next election with promises off goodies and insane benefits to their local public employee unions.
    To quote the Wall Street Journal:
    "California once attracted young, ambitious people who had a lot of dreams, wanted to build big companies. Think Intel, Apple and Hewlett-Packard. Now, however, the Golden State's fastest-growing entity is government and its biggest product is red tape. The first thing that comes to many American minds when you mention California isn't Hollywood or tanned girls on a beach, but Greece."
    Good luck California. The bills for your reckless ways will come due much sooner than you think.

  3. What I don't understand is how illegal alien voters utilizing the county hospitals and the welfare rolls while working for subminimum wage are going to pay all these taxes after the businesses leave California. You see, that is the most important reason that communist countries even managed to function for 60 years — they sealed off their borders to keep people IN.

  4. But, but , but – Willy Brown said, when asked how this tax increase will help, he said something to this effect – " before, the people were not so involved with itt, but now, they have put their blessing on it – " so in their world/universe, everything will be right, in the land of fruits and nuts and econazis and anti-business interests and general disinterested non-voters and illegal aliens and other social misfits and the gimme generation . . .
    I wonder what happens out there when they get another huge damaging earthquake – federal bailout/assistance ???

  5. Chuck Holmes says:

    I bought a house in Nevada last year and I am now in the transition phase of moving out of California. One person or business, not a big deal. But many will eventually sink California.

  6. They ask for it and they are going to go down tell more Mexicans to come on over and we will give you what ever you want till the money is gone

  7. Any chance the Governor or CA legislators might make the connection between businesses leaving to the fact it is nearly impossible to make a decent profit in CA because of a hostile business climate/high taxes/too much regulation ??

  8. DaveNTejas says:

    you can't fix stupid. When there are no "rich" people left to pay the taxes, the moochers will go to the Federal Government fir a bail out, in the end we all get screwed.

  9. DaveNTejas says:

    The answer is very simple, they will leave California and follow the crowd out of town, to a place near you and start sucking on the handout straw, and make more babies.

  10. Unbelievable! These people had the opportunity to vote against a tax increase and they chose to vote for it? Who in their right mind would vote to raise taxes on theirself?

  11. Tall Colorado Guy says:

    It's the best way to get California to have less electoral college votes, as the population decreases so will their number of votes. Yea California

  12. You have to consider the state that is doing it. Obama will be watching to see how it goes, and if they survive guess what? We the people lose again! Just look at all that Obama has done, and who just got re-elected? I think there should be a name change from electoral college to electoral kindergarten..

  13. The people who voted for this believe in redistribution of income. Tax the rich to give lots of free stuff to the leeches. The same memtality as prevailed in the election of Obama for a second term. In the real world, this cannot continue much longer.

  14. scootersma says:

    I hope every single Republican effected by this tax will leave California. That will leave all the dumb democrats to pay!!!

  15. These poeple have not concept of living within your means, but they are going to learn, when the only ones left in California are the ones voting for this stupid stuff.

  16. It is time to can the electoral college! It is time the winner be selected from a true majority. Candidates can do their campaining from TV and twitter. It is cheaper and the questions and response will be relavant to the voters.

  17. Hell no! California does not know what it means to be conservative. Let all of those moderates stay right were they are.

  18. You must think they have some sense left. Really? lol

  19. if you think voting to tax the wealthy and businesses is bad how in Gods name did they vote down prop 37 ??? when obamacare comes in and all you are going to eat is monsantos g.m.o.foods and you wont know it and then little tommy gets sick and then grandma gets sick and you cant get a doctor and then you get sick all because you voted not to know what you are eating you stupid people are brainless…and now the rest of america is going to be treated the same way,,,your eating blind,,,you dont know what your eating,,,how many years have you been so delighted because you can buy seedless watermellons,,,good for you,,,now go grow another m ellon,,,you cant because you will have to buy the seeds from monsanto,,,and they will never reproduce,,,thats what the farmers who started out with monsanto have to put with,,,with regret,,,practacley every fruit and vegie your eating right now is monsanto terminator food,,,its ment to kill,,the united nations said it ( the world is over populated by six and a half billion people ) why do we have wars ???? why cant the f.d.a. find a cure for cancer,,,i know of at least fifty ways to either stop it or cure it,,,oncologists are not allowed to use anything natural,,, the f.d.a. will either take their license or put them in jail,,,thats whats happening in america today…california has too many dumb aliens who vote for the best handout,,,california has a bad race problem,,, and california will not be here much longer all the sick cities are along the coast,,,GOOD BUY joe

  20. I live in California. I did not vote for this stuff. The real problem is the Unions… they have such a stronghold here. The proposition was masked as " for the schools" The Unions did huge marketing for the proposition… even going as far as forcing teachers to hand out propaganda about how the extra funding will help them. (School funding in the state is tied directly to property taxes, which have fallen steeply in the last 6 years).
    So, I don't deserve it… we just have a lot of people here who have been swayed by the unions.