Tuesday, October 22, 2019


Wall Street Journal:
California’s Tax-the-Rich Boomerang
A new study shows the 2012 tax hike drove high earners from the state.
Must be why Cal-i-for-ni-a is a-covered in feces, paw says!
Stanford economists Joshua Rauh and Ryan Shyu analyzed how high earners responded to a 2012 referendum (Prop. 30) backed by Democrats that raised the top marginal rate on taxpayers with more than $1 million of income to 13.3% from 10.3%. The top rates on individuals earning more than $250,000 also rose between one and two percentage points...
I don't see how those poor millionaires stick it. Why, in North Dakota they'd be able to buy a couple of counties! Have to dig their own cisterns, though.
They noted a large uptick in the departure rate of taxpayers with more than $5 million in income following the tax hike — from 1.5% to 2.125% — and a commensurate outflow for taxpayers earning between $2 million and $5 million. 
This essentially means that the likelihood of a wealthy resident moving out of California increased by about 40% after Prop. 30...
The study suggests Sacramento should think again. And watch out for the next recession when investment income and capital gains fall for the affluent. Democrats will have to soak the middle class even more than they already do to finance all of the new spending demands they are creating in the good times (e.g., free health care for undocumented immigrants).
Sounds like the wheels are coming off! Why I bet California's GDP has shrunk to nearly nothin'! Let's see what the St. Louis Fed's figures say:

Whoops, guess not! Cali's also doing well in the Median Household Income category, which just shows what socialistic levelers is a-runnin' that horrible state!

And the state itself says tax revenues are up -- as CalMatters reported in July:
Last week, the state Department of Finance closed the books on 2018-19 revenue and reported that the state collected $144.8 billion, $1 billion more than it had anticipated just weeks earlier, and $2 billion-plus more than the 2018-19 budget had originally forecast. 
It’s also a whopping 71.5% more than the state was collecting a decade ago, far outpacing both population growth and inflation. 
The state has enough money to max out its reserve funds and provide several billion dollars in extra cash to offset schools’ rising pension costs.
Yeah, but it's not millionaire/billionaire money, so it don't count!

The Journal offers no hard numbers for the alleged Millionaire Migration, alas, but once California notices they're missing -- maybe by the number of waiters getting stiffed, or declining sales of Goop products -- they'll certainly switch to a Sam Brownback model of governance. The results should be dramatic!

The Journal seems to be pushing this kind of bullshit even harder than usual lately. Wonder why?

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