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As predicted: California’s 1Q revenues dropping back to earth. Hard.

Which is to say: as predicted by me. I had a feeling that California’s surprisingly high tax revenues in January were due to people rushing through existing taxable transactions before that state’s new rates kicked in; and lo! …I seem to have been correct.

The surge of revenue that showed up unexpectedly in state coffers last month may well be offset by a revenue dip in coming months, according to Gov. Jerry Brown’s administration.

[snip]

[An official California Budget office cash] report says the extra money was “likely the result of major tax law changes at the federal and state level having a significant impact in the timing of revenue receipts.”

Translation: it turns out that people – as usual – make their financial decisions via rational self-interest. Give them a choice to legally avoid paying higher taxes, and it looks like they’ll take it. Also: amazingly, people are a lot more conservative about their own money than they are about everybody else’s.

Not much else more to say, except of course I can’t wait to see California raise taxes again in order to try to keep squeezing revenue out of its electorate. And do you know who else can’t wait? That’s right: Texas. Hey, it’s not the Lone Star State’s fault that California seems so determined to test the Blue Model to destruction…

Via

 

Hot Air also brought out the schadenfreude. As is only right and proper.

Moe Lane (crosspost)

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COMMENTS

  • fbks

    The thing is Texas will get a lot of economic refugees from California, who will like the economic environment, but start voting to change the cultural environment. Look at any number of states that have gone down hard because of this movement of cultural lefties moving to beautiful states. In time, Texas will look like Colorado, Washington, Oregon or Montana. Hunting restrictions, firearm restrictions, sanctuaries for illegals, increased taxes to fund all the lofty ideals of the hard left. The better solution is for the productive individuals in California to become re educated through extreme suffering from their fiscal and cultural errors and repair the Golden State instead of sinking other states.

  • gunnyg2002

    Texas has better erect border checkpoints on the roads coming in from The Republic of Kalifornia ASAP! Stop ALL cars with Kalifornia plates, give them a Constitution exam and if they fail, make them go back to the liberal hell they made.

  • gunnyg2002

    We don’t want them up here in Alaska. We get enough of the dirtbags from Portland and Seattle!

  • GreyCloak

    On the other hand, we’ve got great friends from the vast parts of California that elected Nixon and Reagan as their Governors, then immigrated to Texas after Jerry Brown (the first time), They got their CCPs last year. We can welcome the rich technocrats from San Jose, etc. … they can settle in Austin, “keep it weird,” and not change Travis County a bit.

  • macbookben

    I recall back when I moved from a small southern city to Nashville, TN in the late 90′s, there was a bumper sticker I’d see that read “Thank you for visiting Nashville. Now please go back to California” No doubt the message was directed at LA entertainment celebs and bigwigs who were moving here to escape high taxes and the paparazzi. My point is this: If you move somewhere to find a better life, you have a custodial responsibility to preserve the culture that makes that better life possible. I don’t mind you making fun of my southern accent, but I’ll be damned if I sit idly while you advocate the passage of a state income tax.

  • macbookben

    That’s an awful lonely speck of blue, that county is.

  • grayzel

    We find the same thing happening in our rural towns in Wisconsin. A little example is a lot of people used to burn their garbage in an old 50 gal. barrel. A new neighbor moved in behind our back 40. A few years ago the DNR showed up in our driveway. They received a phone call from a concerned person. It was against the state law for many years but the law was ignored. That person cost me a $250.00 fine. After a polite (sort of) discussion the next morning we have had no more problems.

  • http://www4.webng.com/rickbull/lostlucky/ rickbull

    We call them reverse-dustbowl Okies.

  • The_Gadfly

    I concur on Detroit. But that’s because there’s a Republican governor who is willing to impose consequences on the failing city so the burden on the rest of the state won’t go any higher than it already is. If it were a Dem in the office they’d probably agree with the Detroit mayor and city council that an extension on the previous agreement is in order.

    Cali has a Dem legislature, a Dem governor, and alas all of us are stuck with a Marxist President. That chain reminds me of one of my grandpappy’s favorite jokes. There’s a genetic research company that figures out how to use an ounce of brains to ensure your offspring will grow up to work in a selected profession. If you want him to grow up to be a lawyer, they charge $100,000. If you want him to grow up to be a doctor, that’s $200,000. But if you want him to grow up to be a politician, it will cost you $1 million dollars. A potential buyer objects that politicians are a dime a dozen. The company responds “yes, but do you know how many politicians we have to go through to get an ounce of brains?” Except in the case of Cali, you replace ‘brains’ with ‘responsibility’.

  • leftylurker

    There are a lot of really, really interesting things going on in Detroit. If you ignore the kleptocrat city counsel, the basically criminal infrastructure, and the total dysfunction of the city, there is an AMAZING citizen movement to make Detroit a self sustaining city, with farms, citizens watching for crime and fires, etc. Also, we have a fantastic governor here; Rick Snyder is the man, and things are really improving under him.

    It’s funny, because it took the total breakdown of city services for people to start taking manners into their own hands. Don’t get me wrong, Detroit is a total mess, but it’s on the way up, whereas California has a long way to fall.

    (As a Michigander I can’t help but defend Detroit)

  • PowerToThePeople

    Can not believe I heard you say Rick Snyder, a republican, is a fantastic gov and is the man. I have stuck a thermometer in the ground cause I have to believe it is quite cold a bit further below.

    You are right, there are some good things being tried in Detroit, and being an ex Michigander, I can only hope it improves. But I think it is too little too late. There has been a mass exodus of people, most were the working class, every single business in Detroit is feeling the pinch, even the casinos, gang activity is on the rise majorly, crime is rampant, tax coffers are empty, bills are stacking up, and people have no faith at all in government and Kwame is mostly responsible for that.

    I just do not see Detroit coming back. And I do not think the casinos and pro teams can hold them afloat much longer. What was once the greatest city in the nation is now the worst. Back when I was in Michigan, you just did not go down there after dusk. My buddy who used to accept jobs from that area now refuses to allow his guys to work there and said you do not even want to go down there when it is daytime while a cop rides with you. That speaks volumes.

  • leftylurker

    It is getting better, if bit by bit. Kwame is going to do some much needed time, his terrible mommy is gone, Conyers’s corrupt wife is in jail…but yeah, Detroit is a mess. It’s a sad state of affairs when things are looking up because the thief, possible murderer, mayor is gone.

    Mayor Bing is, in my opinion, an honest man surrounded by thieves, but he’s doing what he can.

    And as for Gov. Snyder, well, I don’t care what the letter is behind your name, if you do a good job I’ll support you. (It doesn’t hurt that he’s a social moderate/liberal though)

  • Sir Aaron

    Don’t get me wrong here. I’m not pleased with CA…being that I’m a California refugee myself (born, raised, live in CA most of my life and fled to TX).
    I’m just placing my bet on Detroit first. That’s all.

  • Sir Aaron

    I appreciate that you are from Michigan and have some pride in the state where you live. And it’s good to hear about a swelling movement for improvement. You’ll have to excuse my remaining skepticism if I don’t find a community bucket brigade to be a particularly convincing piece of evidence concerning the direction of the city.

  • Sir Aaron

    Not to mention that liberal social issues always lead to liberal fiscal issues. Always.

  • The_Gadfly

    Actually not a Cali resident. But since I’m in the People’s Republic of Maryland I can relate.