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California Tax Revenues Miss Projections By $1 Billion As Residents Flee The State

from Zero Hedge:

California’s tax revenues came in $869 million less than forecast for the first four months of the year. Governor brown is now expected to cut some of the proposed spending increases in education, healthcare and infrastructure as a result of the miss. Many things were blamed for the shortfall, from slower than expected wage growth (there’s a fix for that!), to lower capital gains taxes from a struggling market. While those were surely a factor, perhaps the biggest reason is the one that was also unmentioned: residents are fleeing the state in droves.

Tax revenues for the state of California have come in nearly a billion dollars below projections, which is causing Governor Jerry Brown to amend his $171 billion spending plan that was just proposed in January.

 

As Reuters reports, California’s tax revenues came in $869 million less than forecast for the first four months of the year. Governor brown is now expected to cut some of the proposed spending increases in education, healthcare and infrastructure as a result of the miss.

“We had to adjust our fiscal plan to account for the fact that among other things April receipts were about a billion dollars below what the month’s projections had been” said spokesman H.D. Palmer.

Many things were blamed for the shortfall, from slower than expected wage growth (there’s a fix for that!), to lower capital gains taxes from a struggling market. While those were surely a factor, perhaps the biggest reason is the one that was also unmentioned: residents are fleeing the state in droves, with over 250,000 moving out of the state between 2013-2014 alone

Recall that based on a study of IRS tax returns, over 250,000 California residents moved out of the state between 2013-2014, and as we reported a month ago, one catalyst for this migration is also the most “unexpected” one: the unintended, adverse consequences of minimum wage increases.

Read More @ ZeroHedge.com

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3 comments to California Tax Revenues Miss Projections By $1 Billion As Residents Flee The State

  • windrunner56

    Hmmm. Explains all the California plates here in Alberta. I assure you they are not head to the Athabasca Oil (tar) sands in Fort McMurray!!!!

  • Ed_B

    “… residents are fleeing the state in droves.”

    Of course they are. They are tired of being milk cows for the idiots in Sacramento. Anyone with any sense at all has already left Kleptofornia or is planning to do so shortly. There is no valid reason to remain there and enable the abuse that is being heaped upon them by a completely incompetent, over the top, and out of control government. People and money tend to go where they are best treated and for the past decade or two Cali ain’t it.

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