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The massive swing is being caused by lower tax revenues. So, why are tax revenues falling?
1M+ taxpayers have fled under Newsom...outbound net domestic migration of >1/4M/year...since 2019, & growing! Cali's loss is = to the population of Montana!
Also, 153 corps moved their HQ's out of Cali on Newsom's watch...like American Airlines, Chevron, McAfee, Hewlett Pakard, Pabst Brewing Tesla, Oracle, Charles Schwab:
The economic impact of losing all these large employers is in the Trillions.
Newsom would destroy America's economy.
Large employers would flee offshore, & take their jobs, & Trillions, with them under a Newsom Presidency.
Wealthy Americans would also flee, just like they did from France under Francois Hollande, (a Newsom clone) after Hollande jacked taxes on the rich; like Newsom has done in Cali, & would do on all America's job creators, if given the chance:
The massive swing is being caused by lower tax revenues. So, why are tax revenues falling?
1M+ taxpayers have fled under Newsom...outbound net domestic migration of >1/4M/year...since 2019, & growing! Cali's loss is = to the population of Montana!
Also, 153 corps moved their HQ's out of Cali on Newsom's watch...like American Airlines, Chevron, McAfee, Hewlett Pakard, Pabst Brewing Tesla, Oracle, Charles Schwab:
The economic impact of losing all these large employers is in the Trillions.
Newsom would destroy America's economy.
Large employers would flee offshore, & take their jobs, & Trillions, with them under a Newsom Presidency.
Wealthy Americans would also flee, just like they did from France under Francois Hollande, (a Newsom clone) after Hollande jacked taxes on the rich; like Newsom has done:
My friend who owns two companies (not brick and mortar) that each bring in 7 or maybe now 8 figures each, they sold Santa Monica nice house for a tax friendly Scottsdale place. Guarantee this is now their “home base”. They had moved to LA about 10 years ago to make more money (their two industries thrive there, fitness and now podcast wealth management).
Turns out people don't work to pay taxes and like keeping the money they worked hard to earn in their own pockets.
Also, to be fair, American Airlines was never HQed in California. It's been a Dallas-based airline for as long as I can remember. I believe it was HQed in New York before that. Same concept above applies.
They did shut down their SFO crew base though on Newscum's watch.
Last edited by albert648; 07-08-2023 at 06:37 AM..
My friend who owns two companies (not brick and mortar) that each bring in 7 or maybe now 8 figures each, they sold Santa Monica nice house for a tax friendly Scottsdale place. Guarantee this is now their “home base”. They had moved to LA about 10 years ago to make more money (their two industries thrive there, fitness and now podcast wealth management).
The rate companies are leaving Cali has hastened under Newsom's watch. Here's a list of the bigger and better known:
Let's first give Newsom credit for two years of record revenues and budget surpluses! He was a genius then, I suppose. The main reason for Cali's budget volatility is in the nature of its tax structure - not because people who can't afford a home there are moving to Texas. California is seeing sharply reduced income due mostly to troubles the wealthy are having with returns on stock investments. California disproportionately relies on taxes upon the wealthy, so when the rich hurt, the state hurts. Fortunately, Newsom squirreled away some of the record revenues of the past couple years, which will soften the shortfall until improvements in the markets are reflected in tax payments.
California's budget relies heavily on Capital Gains taxes. It relies heavily on (wealthy) people buying and selling stocks and RE. Any correction or stagnation in the markets = budget deficits. On the flip side, when the economy was ROCKETING out of the Covid collapse, CA had a $100 billion surplus almost entirely from Capital Gains. California squandered all that money via direct payments of $350.00 per taxpayer that made $75,000 or less.
So when CA alienates their wealthy pool of people and the market stagnates, the budget is busted. That's why we now have a $35 billion deficit, potentially much higher when/if the US economy enters a new recession. California sure could use Elon Musk's wealth to help pay some bills right about MEOW.
Let's first give Newsom credit for two years of record revenues and budget surpluses! He was a genius then, I suppose. The main reason for Cali's budget volatility is in the nature of its tax structure - not because people who can't afford a home there are moving to Texas. California is seeing sharply reduced income due mostly to troubles the wealthy are having with returns on stock investments. California disproportionately relies on taxes upon the wealthy, so when the rich hurt, the state hurts. Fortunately, Newsom squirreled away some of the record revenues of the past couple years, which will soften the shortfall until improvements in the markets are reflected in tax payments.
Newsom had nothing to do with that.
The credit for the surplus is from wealthy people making money in the stock market and Real Estate.
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This thread is about California and Newsom. Feel free to start your own thread about FLA, but don't deflect this thead off topic.
