Sunday, May 13, 2012

This Just In: 
Progressives Shocked 
To Discover Yet AGAIN 
That Jacking Up Tax Rates 
Does NOT Increase Tax Revenue

Alternate Headline: Dems In CA Plan To Raise Taxes Again To Create New Tax Revenue After Last Year's Tax Increases Failed To Generate Any New Tax Revenue

How do I convince Californians this happened because
the rich still aren't paying their fair share? 

They actually make this amazing new discovery every single time they raise the tax rates.  It's almost as if they can never learn anything from experience or something.
SACRAMENTO, Calif. (AP) — California's budget deficit has swelled to a projected $16 billion — much larger than had been predicted just months ago — and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, Gov. Jerry Brown said Saturday.
The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.
"This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year," Brown said in an online video. "But we can't fill this hole with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety."
Brown did not release details of the newly calculated deficit Saturday, but he is expected to lay out a revised spending plan Monday. The new plan for the fiscal year that starts July 1 hinges in large part on voters approving higher taxes.

Got that? Just 4 months ago the politicians in Sacramento figured their budget deficit this year would top 9.2 billion. It's MAY and they just got around to realizing, oh hey turns out we were off by about 7 billion or so.
"Look, I know we said $9.2 billion just 4 months ago. 
That was before the taxpayers of this state f**ed up our plans....."

So what's Gov. Moonbeam's solution to getting those darn tax revenues higher again? You'll NEVER guess: 

The governor has said those tax increases are needed to help pull the state out of a crippling decade shaped by the collapse of the housing market and recession. Without them, he warned, public schoolsand colleges, and public safety, will suffer deeper cuts.
"What I'm proposing is not a panacea, but it goes a long way toward cleaning up the state's budget mess," Brown said.
Democrats, who control the Legislature, have resisted Brown's proposed cuts so far this year. Republican lawmakers criticized the majority party for building in overly optimistic tax revenues.
CA. Gov. Jerry Brown stunned to find out all that 
new $ from last year's tax hikes that they already spent never materialized

So without getting any cuts done, Democrats in CA have continued to spend like drunken sailors without bothering to notice - or care if they did notice - businesses & rich taxpayers are fleeing their state in droves.  Their taxable base is shrinking. So they'll just...keep raising taxes on the suckers that are left.

For most Progressives, raising tax rates isn't about generating more revenue for the State to use in the first place. It's about 'fairness', not results.  But even the Progressives in CA. are being forced to realize that when you raise the rates you change people's economic activity and you end up collecting less.  

Bruce Bartlett wrote a long and definitive refutation of the belief that raising tax rates generates more tax revenue for the State to spend:

Tom Trinko at American Thinker also investigates the idea that higher taxes = greater revenues.

Progressives don't learn from the actual history of what happens when tax rates go up because they are THEORY-oriented people who fall in love with an IDEA.  The study of actual RESULTS - experience - does absolutely nothing to float their boat.  Despite all the evidence to the contrary, they will continue to insist there is no valid reason why their theory won't work THIS time.  

Even with the evidence staring them in the face in CA. that tax rates are already too high, all the Progressives can come up with is raising the rates yet again as they refuse to understand the people with the money will simply either change their economic activity or leave the state altogether.  
When CA collapses financially, they had better not be expecting a bailout from Washington.  What really WOULD be unfair would be expecting taxpayers from states like Texas and Wisconsin who have taken steps to wisely handle their own finances to send billions of their tax money to rescue a state where taxpayers insisted on putting Progressives in charge that refused to practice any sort of fiscal sanity at all.  Voters in CA kept putting these big spenders/big taxers in charge.  They'll have to live with the consequences of that.  


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