In the Age of Obama, California under Governor Moonbeam is a reliable predictor of where the nation is headed: Bankruptcy.
On Tuesday, California released a report that revealed state tax revenues have plummeted even further below Gov. Jerry Brown’s (D) estimates, even after residents voted to increase taxes via Proposition 30 in November’s elections.
At the end of November, “taxes were 3% short in the fiscal year that started in July,” which is “a gap of $936 million.” The state was 0.7% short a month before.
H.D. Palmer, a spokesman for the state’s Department of Finance, spun the poor numbers by saying Facebook’s stock vested earlier than expected, and “boosted October taxes higher, while decreasing November revenue.”
But the report found that tax revenues were below estimates nearly across the board, as total “year-to-date revenues are $936 million below the initial forecast.”
According to the report, personal income tax revenues were “$827 million below the month’s forecast of $4.387 billion.” Sales and use tax receipts “were $9 million below the month’s forecast of $1.601 billion” and the year-to-date sales tax revenue was $8 million below forecast.
Go here to read the rest at Big Government. Shazam! You mean to say that raising taxes, increasing government regulation, driving businesses out of the state and spending like drunken bureaucrats can cause tax “revenues” to decrease? Who would have predicted that? (Other than people with even a cursory knowledge of history, economics and human behavior that is.) Back in the sixties California Dreamin’ was a popular song. An unpopular reality for the next few years will be California Nightmarin’ as the nation experiences what the Fools’ Gold state has been pioneering: a cradle to grave welfare state atop a collapsing tax base.