California revenues are 10.8% below budget projections despite Prop 30’s intent on taxing the rich.
California Democrats convinced voters the solution to their economic woes lie in increased tax rates on the rich. In November they passed Proposition 30 to create the highest state income tax in the nation with taxes applied retroactively back to January 1, 2012. Despite this effort Cali has a $1 billion shortfall in corporate and income taxes last month. It appears that the so-called “rich” have voted with their feet by moving themselves and their businesses out of state.
Something similar happened with Britain back in 2009-2010. They tried to soak the rich and 2/3 of the rich in Britain left.
This is the solution Obama and the democrats are offering to solve the “fiscal cliff” and to fix our nations economic problems – all under the guise of “fairness”. Why would anyone believe this will work when it has proven to have failed elsewhere when tried?