How is the California recovery going?
“An 8.2 percent drop in corporate tax receipts cut $125.8 million from California’s cash intake in March.
Overall, the Golden State’s revenue fell $233.5 million, or 4.2 percent, below the guesses made when the budget was passed.”
When firms are paying less in taxes, they are hiring fewer people.
Be prepared for the current California Depression to last for several more years.
The revenue picture tells the real story.
California corporate tax take fell 8 percent in March
San Francisco Business Times by Steven E.F. Brown, 4/11/12
An 8.2 percent drop in corporate tax receipts cut $125.8 million from California’s cash intake in March.
Overall, the Golden State’s revenue fell $233.5 million, or 4.2 percent, below the guesses made when the budget was passed.
According to State Controller John Chiang, who released the figures, more than a third (35 percent) of California’s revenue is expected to come in during the next three months. April, May and June are “the most important period for tax collection in the fiscal year,” Chiang said.
California ended the previous fiscal year last summer with a cash deficit of $8.2 billion. The combined deficit for this year and last is $21.5 billion. The state is covering that hole by borrowing $15.1 billion from “internal” sources (temporary loans from special funds in the budget) and $6.4 billion in external borrowing.
The controller’s office developed “a series of short-term cash solutions” to keep California from falling below a “minimum safety level” of $2.5 billion in the general cash fund.
I’m shocked !!! Raise the corporate tax rate, and you get less money coming into the state. None of these people have taken a economics class, evidently. Raise the corporate tax rates, and they will find states that are friendly to business, Texas, North Dakota, North Carolina, etc.
Texas has a state unemployment rate of 5%, Kalifornia is at what, 11.4%.
Yeah, Kalifornia really knows to do business, if only to line their own pockets.
April 12, 2012 at 7:40 am