In California 54% of the People voted to have 1% of the People pay $6 Billion more in Annual Taxes

Posted by PITHOCRATES - November 10th, 2012

Week in Review

The Left is applauding California for voting to raise taxes on the rich.  Saying that California is choosing to be responsible.  While the federal government continually chooses to be irresponsible.  But is this democracy?  Or mob rule?  We can find the answer to these questions easily by understanding what this vote really did (see Californians approve massive tax hike on the wealthy by Tami Luhby posted 11/7/2012 on CNN Money).

Californians approved a measure Tuesday that raises taxes on the wealthy and hikes the state sales tax. It is expected to bring in $6 billion a year, on average, over five years.

Proposition 30, which Governor Jerry Brown has lobbied heavily for, captured 54% of the vote. Its approval prevents massive budget cuts to the state’s public schools and universities…

The wealthiest 1% of Californians — those with annual incomes of $533,000 or more — will shoulder nearly 79% of the tax increase, according to the California Budget Project, a research group that endorsed the proposition. They will see their taxes rise by 1.1% of their income, while the bottom four-fifths of the state’s residents will see an increase of between 0.1% and 0.2% of their incomes…

The measure is expected to raise $8.5 billion in new revenue, according to the Department of Finance. Some $2.9 billion will go to schools, while the remaining $5.6 billion can go toward closing budget gaps.

But the Legislative Analyst’s Office warns that the measure depends heavily on the income of the wealthiest residents, which is volatile and difficult to predict.

So a mob of 54% of the electorate voted to have 1% of the population pay more in taxes.  Who are already paying the lion’s share of taxes.  Problem solved.  Or so they think.  For will these rich people stay in California where a mob can shake them down to pay for more free stuff for those who don’t pay taxes?

Oh, it’s easy to get the mob to increase taxes on others.  Especially if it’s for education.  So students can go to college and get their degrees in film and gender studies.  Degrees that won’t help them get high paying jobs.  But will leave them with more student loan debt.  So why do it?  Because if they didn’t subsidize education more in California how else would they pay for those high university pay and benefits packages?  Which is what is really driving up the cost of education.  For what is education but some books and a lot of people on a university campus?  There is no manufacturing equipment.  No raw material costs.  Education is nothing but overhead.  And an expensive overhead at that.  Just look at the housing the senior professors and administrators live in.  And the lives they enjoy.  They’re the same kind of lives that the so-called 99% demonize business owners and Wall Street types for living.  But because they are on a university campus they get a pass.

A lot of Hollywood moving-making business is leaving California.  Look at the closing titles of some current movies and you will see a lot of them are filmed on location.  Where they can escape the high cost of movie-making in Hollywood, California.  And if the movie-makers are fleeing the high cost of California it would be foolish to think that the richest 1% will not find more agreeable tax locales to invest their money.  And to live.  So don’t count on that additional $6 billion a year yet California.  Because these new tax rates will probably bring in a whole lot less revenue than that.  As increased tax rates always do.

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