California Tax Revenues Plunge; Businesses Exit "Taxifornia" in Droves

[Ballygrl]

California Tax Revenues Plunge; Businesses Exit "Taxifornia" in Droves; Piecing Together the Jobs-Picture Puzzle



http://globaleconomicanalysis.blogspot.com/2012/03/california-tax-revenues-plunge.html

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...

Hello Mish

I came across this little tidbit from the February report from the Comptroller's office of the State of CA.

In Feb 2012 income tax receipts are down $328 million y-o-y, or 16.5%. Ouch!

What about retail sales taxes? CA had a "temporary" sales tax hike of one cent that expired last July. Adjust the data to reflect that change, it looks like sales taxes in February are $400 million y-o-y +/-, a decline of about 12.4%. Double ouch!

That doesn't sound like robust growth to me.

[Eupher]

Commiefornia might be a nice place to visit, but I wouldn't want to spend any money there.

People of Commiefornia - you've got your welfare nanny state. Just what you said you wanted. Now you get to enjoy the benefits. 

[Ballygrl]

Commiefornia might be a nice place to visit, but I wouldn't want to spend any money there.

People of Commiefornia - you've got your welfare nanny state. Just what you said you wanted. Now you get to enjoy the benefits. 

The crappy thing is they still have all those electoral votes.

[NHSparky]

The crappy thing is they still have all those electoral votes.

Not for long.  Eventually even the illegals move on to somewhere else.

And after seeing how the Franchise Tax Board is going after people for basically no reason at all, I'm just waiting for them to come after me, despite the fact I haven't stepped foot in the state in six years.

Hell, I had to fight with them for five months to get the $600 they owed me (CA state tax taken out of inheritance from my uncle) in 2008 because I didn't renew my registration in 2006, despite the fact 1--I'd already left, 2--the vehicle was subsequently registered in NH, 3--nobody in CA state government talks to each other unless and until getting someone else's money is involved.

[Ballygrl]

Not for long.  Eventually even the illegals move on to somewhere else.

And after seeing how the Franchise Tax Board is going after people for basically no reason at all, I'm just waiting for them to come after me, despite the fact I haven't stepped foot in the state in six years.

Hell, I had to fight with them for five months to get the $600 they owed me (CA state tax taken out of inheritance from my uncle) in 2008 because I didn't renew my registration in 2006, despite the fact 1--I'd already left, 2--the vehicle was subsequently registered in NH, 3--nobody in CA state government talks to each other unless and until getting someone else's money is involved.

Just a curiosity question here, if Californias financial climate continues to go downhill, and you have a significant number of people dependent on social welfare programs, disability etc. what happens when the State runs out of money? would they ask the Federal Government for money? or will all those people dependent on Government just pack up like you said and milk taxpayers elsewhere?

[CG6468]

We're taking the old Rt.66 in June, supposedly all the way out to the coast. But we decided to stop at the AZ/CA line and not go into the land of fruits and nuts.

[JohnnyReb]

Tends to lend a whole new meaning to the old "California or Bust" thing, huh?

[CG6468]

Not for long.  Eventually even the illegals move on to somewhere else.

As are many of the LEGAL residents. There is almost an mass exodus from that hellhole.

[Celtic Rose]

As are many of the LEGAL residents. There is almost an mass exodus from that hellhole.

Two of my cousins and one of my aunts moved to Ohio from California earlier this year, and I of course moved to Nebraska.  Several of my cousins left California for Washington a number of years ago, and they say you couldn't pay them to move back to California.  The only thing that might take me back are my grandparents, my grandmother has Thyroid Cancer and my grandfather has Alzheimer's disease, so if I am able to find a job out there after graduation I might move back to spend more time with them while they are still here.  But then again, with what I could save in rent out here, I could probably afford to buy a plane ticket out there on a regular basis.  My mom is spending a lot of time helping with my grandfather, but she has mentioned that if I stay out here, she and my dad would consider at least buying a vacation home near where I am. 

[NHSparky]

Just a curiosity question here, if Californias financial climate continues to go downhill, and you have a significant number of people dependent on social welfare programs, disability etc. what happens when the State runs out of money? would they ask the Federal Government for money? or will all those people dependent on Government just pack up like you said and milk taxpayers elsewhere?

Lose 1000 day laborers, nobody gives a shit.  Lose a few dot-com millionaires, you've created a BIG problem.

Sadly, nobody in Sacramento has yet to figure that out.  Hell, nobody OUTSIDE Sacramento figured that out, judging by the fact that Governor Moonbeam is back in power.  Prop 13 came about in 1978 because of his insane increases in property taxes.

Now I might sound a bit tinfoil hatted here, but I think 100 years from now, historians will point to the day the federal government bailed out the CA state government after they filed for bankruptcy as the "opening salvo" in the Second American Civil War.  YMMV.

The whole point is exactly what we've known all along, but the pols can't bring themselves to admit or face--the level of spending and the future liabilities are unsustainable, and given the current economic outlook for places like California, the judgement day will only come that much sooner.

[Evil_Conservative]

California business owner's are welcomed to settle down in Las Vegas.  We have many vacant offices and thousands of unemployed/underemployed people.

[Zeus]

My Sisters Daughter accepted a job out in the LA area over a job in New mexico because it paid $5,000/yr more. she wouldn't listen to reason,after all she's a college graduate don't ya know. I give it a yr 2 tops and she'll be back in NM or somewhere besides Taxifornia.

[NHSparky]

My Sisters Daughter accepted a job out in the LA area over a job in New mexico because it paid $5,000/yr more. she wouldn't listen to reason,after all she's a college graduate don't ya know. I give it a yr 2 tops and she'll be back in NM or somewhere besides Taxifornia.

CA state income tax alone will eat up $5K, to say nothing of the cost of living.

[Maxiest]

We love Cali here in TN.  We have benefited greatly from their taxation.  Such as Verizon wireless and Nissan.

[Zeus]

Texas Gov. Rick Perry has made some high-profile trips to California, bragging that Texas has attracted 153 companies from the Golden State between January and August of 2010. He is citing Dun & Bradstreet information, but doesn’t note that 92 companies moved from Texas to California during the same period.
Overall, Dun & Bradstreet counted 1,280 businesses relocating from other states to Texas, second to Florida’s 2,032.
DeVore said, “No one is claiming Texas is utopia, but regardless of rhetoric, they are creating jobs and my boss has been working to protect California jobs.”
He said a cement company, Texas Industries, applied for operating permits in both Texas and California at the same time. Texas approved the permit in 18 months and California took seven years.
“And Andy Puzder told us that to open a Carls Jr. restaurant in California takes an average two years and in Texas it’s 45 days,” DeVore said.

[/color]

Gee, wonder why Business is fleeing california

[Lacarnut]

Revenues from cigs and booze taxes are up. Now if they could just figure out how to put a tax on grass, the queers and the nutty librals living there, everthing would be hunky dory. Not.  

[DumbAss Tanker]

CA state income tax alone will eat up $5K, to say nothing of the cost of living.

That's a no-shitter.  The reason a lot of jobs pay around 10% more in Commiefornia than most other places is because the cost of living is around 20% higher than it is most other places.  It's a net loss to get sucked in by that 10% enticement, though in some professions you might have to go there and just gut it out to move ahead in that particular field.

[Zeus]

That's a no-shitter.  The reason a lot of jobs pay around 10% more in Commiefornia than most other places is because the cost of living is around 20% higher than it is most other places.  It's a net loss to get sucked in by that 10% enticement, though in some professions you might have to go there and just gut it out to move ahead in that particular field.

Back in later '80's I knew a fellow that worked for Raytheon Corp , they Moved him from somewhere on the east coast , I can't recall where. Moved him to El Paso doing the same job but paid 11K/YR Less. He was all kinds of pissed at first until he started checking things out. He rented a bigger place for about half of what he had been paying. He figured that alone would make up the 11k differential. Not to mention Texas has no state Income tax or personal property tax, Insurances are cheaper (not by much but cheaper). He figured when all was said and done he was getting more for less.

[Eupher]

Back in later '80's I knew a fellow that worked for Raytheon Corp , they Moved him from somewhere on the east coast , I can't recall where. Moved him to El Paso doing the same job but paid 11K/YR Less. He was all kinds of pissed at first until he started checking things out. He rented a bigger place for about half of what he had been paying. He figured that alone would make up the 11k differential. Not to mention Texas has no state Income tax or personal property tax, Insurances are cheaper (not by much but cheaper). He figured when all was said and done he was getting more for less.

Tots can speak to this better than I can, but part of the compensation package offered includes analyses done for comparable jobs in differing locations. The compensation is more-or-less adjusted to deal with the cost of living, but as has already been pointed out in lurid detail, moving to a high-cost area NEVER completely factors in the total cost of living increase that the person has to deal with.

Similarly, moving expenses NEVER factor in all the shit we have to deal with (and pay for) when we move to take a new job.

[rich_t]

Tots can speak to this better than I can, but part of the compensation package offered includes analyses done for comparable jobs in differing locations. The compensation is more-or-less adjusted to deal with the cost of living, but as has already been pointed out in lurid detail, moving to a high-cost area NEVER completely factors in the total cost of living increase that the person has to deal with.

Similarly, moving expenses NEVER factor in all the shit we have to deal with (and pay for) when we move to take a new job.

So very true.  If you can even find a company that provides relocation pay.

[obumazombie]

We're taking the old Rt.66 in June, supposedly all the way out to the coast. But we decided to stop at the AZ/CA line and not go into the land of fruits and nuts.

Granola state.

[Eupher]

 

We're taking the old Rt.66 in June, supposedly all the way out to the coast. But we decided to stop at the AZ/CA line and not go into the land of fruits and nuts.

Flew into LAX over the weekend coming back from Phoenix.

Let's just say for the sake of decorum I bought nothing during the 2.5 hour layover. But I left 'em a little prezzie just the same.    

[BlueStateSaint]

My sister and BIL live out there.  He's stationed in Port Hueneme (sp?), and they're supposed to find out this summer if they have to go to Italy for two or three years.  I'm sure that their three daughters would like it, for a while . . . but I tend to think that they'd be happy to get out of Commiefornia.

[rich_t]

California Tax Revenues Plunge; Businesses Exit "Taxifornia" in Droves; Piecing Together the Jobs-Picture Puzzle



http://globaleconomicanalysis.blogspot.com/2012/03/california-tax-revenues-plunge.html

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...

This is what happens when you tax the shit out of companies...  They pack up and go elsewhere. 

Congress needs to pay attention.

[Wineslob]

Gee, Moonbeam is ****ing up the state just like last time, thanks S.F and L.A.!