ENVY, IF ONLY WE COULD BE LIKE GREECE …

California released a report that revealed state tax revenues have plummeted even further below Gov. Jerry Brown’s (D) estimates, even after residents voted to increase taxes via Proposition 30 in November’s elections.

At the end of November, “taxes were 3% short in the fiscal year that started in July,” which is “a gap of $936 million.” The state was 0.7% short a month before. 

According to the report, personal income tax revenues were “$827 million below the month’s forecast of $4.387 billion.” Sales and use tax receipts “were $9 million below the month’s forecast of $1.601 billion” and the year-to-date sales tax revenue was $8 million below forecast.

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  CAECONOMIST

  This is only the beginning. I am a CA resident, and in the 1%. My accountant gave me the bad news; I am rounding here, but here is the basic story. For each additional dollar earned, 42 percent to DC for income and Obamacare. 14 percent to California. We are up to 57 percent. Another 9 for some self employment stuff, etc. Leaving a 67 percent load. I get 33 percent. If i spend it, I lose another 9 percent on sales tax (9 percent of 33 percent; about 3 percent of my gross). If I intend to give this to my kids upon my demise, then I lose 55 percent of the 33 percent, assuming I already having given the max to them already. Bottom line for me, as I spend my savings in my local business and save for my kids, my effective tax becomes about 85 percent in a strategic sense. I do not invest in munis and stocks, but into my business. So i work for the government from Jan to Sept at least. My accountants conclusion ... Move to Texas, or Singapore, but there still be too much taxes to spend on expanding my business either way. Americans are taxed, even when living overseas, but do avoid State income taxes and sales taxes ... At least that is 25%.