California Tax Increases not Working, Deficit up $2.7 Billion

Californians voted for massive tax increases by approving of Proposition 30 in November, the state’s tax revenues declined in November by $806.8
million, or 10.8%.

As California residents flee the state, and take their tax dollars with them. California has continued to engage in deficit spending. This has resulted in the state’s budget deficit for the first five months of the fiscal year increasing to $2.7 billion, bringing the state’s total debt to nearly $25 billion.

State bureaucrats are projected to spend more money than the additional revenues the state is expected to gain from Proposition 30’s passage.
For instance, The Department of Developmental Services and the Department of Health Services in California has already increased its spending “in comparison to its spending last year.

Desperate California tried to sell cap-and-trade credits that the California government expected to sell for a hefty profit, the auction sank like a stone. When the California Resources Board held its first auction of the credits late last month, they projected an ultimate $1 billion profit, they were 86% short of their goal as companies simply decided to leave California than have those added costs (taxation).

In Case You Missed It:  Indonesia: An Asian Powerhouse Growing Fast
Posted in Financial and tagged , , , , .

One Comment

  1. As Liberal California goes; so “O” goes. Tax increases never work for Liberals for obvious reasons. One of the main tenets of their ideology is to tax and spend then, tax and spend some more. They carry this forward until any country they infect is completely bankrupt. They greedily gorge on the wealth of the country, spending and wallowing like pigs in luxury until every penny is gone.

Leave a Reply

Your email address will not be published. Required fields are marked *

Optionally add an image (JPEG only)

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.