Good day all. Over the last few years, Kalifornistan has experienced something unheard of. People are packing up and moving out of the state. It’s not just people, Fortune 500 companies that have, or had, headquarters or major facilities in the state are also leaving.
The reasons for this are pretty straightforward. The idiots running the state have been, basically, going full socialist totalitarian. They have all but stripped the God/Nature give rights guaranteed Americans under the constitution from the citizens. They’ve also been busy basically looting the most productive members of the state with the highest taxes in the country. Not satisfied with that, Kalifornistan is now looking to double the tax rates. Here are the details from Neonnettle:
One of the reasons California is losing so many residents is mostly down to the blue state’s crippling taxes.
But the Golden State failed in connecting the dots and is now pursuing a state constitutional amendment to double taxes.
The proposed amendment, ACA 11, would increase several key taxes in order to fund a state-level government healthcare scheme.
That “Healthcare scheme” is nothing more than the standard socialist government run system that has failed everywhere it’s been implemented. What’s worse, Gruesome Gavin Newsom intends to make it available to illegal aliens. This is going to cost tens of billions of dollars. As to where the money is going to come from?
The increase would hike the average household’s taxes by an unbelievable $12,250, according to the Tax Foundation. The amendment would increase state revenue by $163 billion a year, more revenue than California in an entire year before 2020.
There is the income surcharge (on top of the already-high state income taxes) which applies to start at $149,509 in earnings. Then there is a payroll tax add-on, where the top rate would apply to employees earning over $49,990. And the 2.3% business tax hike on gross receipts above the first $2 million a business takes in.
There are a few problems with this of course. (Only a few?) First the massive tax hike on a businesses gross receipts. This is the money that comes in from customers. Most of that money is then used to pay bills, pay off loans, pay salaries and other business expenses. The actual net income is a lot less then $2 million dollars. It might be less than $100K. If a business is going to loss over 2% before anything else, a lot of them are going to be in the red. This means going out of business.
Second is the massive tax hikes on “The rich.” They are already seeing high earners moving out of state. This includes a lot of entertainers, actors/actresses, etc. Even production companies have been doing more work in less hostile states. There is an actress like who moved from Kalifornistan to Tennessee this year with her family. I have little doubt one of the reasons is Kalifornistan’s slide into Third World status.
The proposed increase comes as the California government is already seeing record tax revenue.
For socialists and communists, there is never enough money. If you have any, it isn’t fair and they are going to take it from you, “For your own good of course.” The problem with all this is that it assumes that people and businesses won’t change their behavior. (Or leave the state)
Critics argue that tax increases are harmful to the economy, most notably the gross receipts levy. Jared Walczak said that due to the payroll tax increase kicking in at 50 employees, it effectively creates a “tax cliff,” taxing businesses and discouraging growth.
“Imagine, for instance, the overly simplified hypothetical of a company with 49 employees making $80,000 each,” he writes.
“At 49 employees, the company has no payroll tax burden. Hiring one additional employee generates a tax bill of $90,000 — more than that employee’s salary!”
Basically companies won’t hire more people. We saw something like this when they rammed Obamacare down people’s throats. The mandates on businesses caused many of them to cut hours and convert people to part time. They lost their benefits and saw a pay cut. Many others laid off their employees and replaced them with contractors, again not paying any benefits. The taxes on gross receipts are even worse.
“For low-margin businesses like supermarkets, 2.3 percent of gross receipts may literally exceed current profits even if the company is doing well.”
“For instance, Kroger’s profit margins dipped to 0.75 percent in late 2021 and have historically hovered around 1.75 percent.”
“These taxes are even worse for businesses posting losses, including startups that haven’t turned profitable yet, because they are taxed on their receipts even if their expenditures exceed revenues.
“For startups, a high-rate gross receipts tax could be disastrous.”
Actually, for startups, there wouldn’t be a problem. They simply wouldn’t open their doors in Kalifornistan. All those low margin businesses such as supermarkets and restaurants? They will quickly close their doors and go out of business. Then there is the massive tax hikes on the average person working in Kalifornistan. Most people can’t handle a $12K increase in their taxes. It will literally force them to choose between food and a roof over their heads.
Proponents say Californians should be happy because they would get “free” government healthcare because of the tax increases.
Nothing in life is free, unless you’re part of the Progressive Ruling Elite in Kalifornistan. If this disaster passes, Kalifornistan will see a massive migration out of the state of those who actually work and have money. Even the Big Tech Titans will have to seriously reconsider staying in the state if this nonsense goes into effect.
Oh, and that “Free” Healthcare? Who will be providing it? You can bet that all those doctors, who will take massive hits to their bottom line, will pack their bags and move elsewhere. Those that remain will not be anyone I would trust to treat a case of bad breath. If this were to go into effect, the next census would probably see Kalifornistan losing 4-10 seats, and Beverly Hills looking like a bombed out ruin. Well, at that point, we can finally kick them out of the union. Mexico can have them back. (But will they want Kalifornistan?)
Thatisall
(2 votes, average: 5.00 out of 5)
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