Businesses leaving Taxifornia In Droves

Discussion in 'Politics' started by Tsing Tao, Mar 16, 2012.

  1. Tsing Tao

    Tsing Tao

    - Mike "Mish" Shedlock

    California Tax Revenue Plunges

    Inquiring minds have noticed a huge plunge in California Tax Revenue for the month of February compared to February 2011.


    That is a 22.55% plunge in spite of the fact that this February was a leap year adding a day to the calendar.

    Madeline Schnapp, at TrimTabs Investment Research sent me a quick note regarding that plunge a few days ago.

    Madeline writes...

    Many Explanations for the Unemployment Puzzle

    There are many explanations for the "miracle drop" in unemployment.

    Disability Fraud: Disability Fraud Holds Down Unemployment Rate; Jobless Disability Claims Hit Record $200B in January
    Exploding growth in student loans and middle-aged job hopefuls returning to school: Consumer Credit "Demolishes Expectations" Really? No Not Really! The "Non-Bounce" in Non-Revolving Credit
    Involuntary Retirement: Boomers of retirement age that still want and need a job have involuntarily retired to collect social security because unemployment benefts rans out and they have no other source of income.

    Divergence with Gallup

    Those there things piece together the "unemployment puzzle" nicely except for one thing. Gallup polls do not agree as noted in Gallup Reports Large Jump in Unemployment to 9.1%, Underemployment to 19.1%.

    So, is the BLS carefully massaging the data, or are their seasonal adjustments simply that far out of line with reality, tax collections, and common sense?

    Businesses Exit California in Droves

    Madeline and I are not the only ones who noticed the plunge in California. Chriss W. Street on Beitbart discusses the California Exodus behind the drop. Street has the reason: Businesses fed up with high taxes have fled the state.

    Taxed to Death

    If Brown continues to suck up to the public unions responsible for the mess California is in, expect still more businesses to leave, expect the unemployment rate to rise, and expect a continued plunge in revenue.

    Mike "Mish" Shedlock
  2. pspr


    Yet Californians keep re-electing their liberal legislature and another liberal governor. Does Hollywood and the S.F Bay area have a controlling influence on state elections or has the entire state turned self destructive?
  3. rew


    The one silver lining were the increases in the Alcoholic Beverage Tax and Cigarette Tax. So the solution to California's woes is obvious -- encourage alcoholism and smoking.
  4. ALL of the rich people and successful business should leave Calfornia.

    Perhaps THEN they would wake up and realize... "We ain't go nothin' unless we have successful people and companies to bleed".

  5. Banjo


    The sheer numbers of present and retired public union employees voting for their own outrageous benefits to continue overcome all else.
  6. Tsing Tao

    Tsing Tao

    Personally I think it's poetic justice.
  7. Banjo


  8. Eight


    California has both income tax and sales tax. They tax your retirement even after you leave the state! They give benefits to illegal Mexicans who have all the service sector jobs and treat Whities like dirt any chance they get. I don't get this "we've gotta cut our own throats" mentality among white liberals, I guess they are so stupid they won't get it until they are homeless or something.. but they still won't get it probably.
  9. Eight


    In that time period Aerospace packed up and left the State. That was the big income thingy for California. The leadership never even understood how much of their tax revenues came from Aerospace until the industry had relocated to Georgia. The furniture making industry has been replaced by Mexicans building furniture in their garages, i'm not making this up, the best way to buy [cheap] furniture is through a swap meet. A large part of the economy is underground nowadays and that exacerbates the revenue shortfall problem.
    #10     Mar 16, 2012