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What are the affects of tax increases? If you believe in Dr. Art Laffer, the higher the tax, the lower the revenues. Once again he is right.
In an California Finance Department Report, State revenues are down--but the categories where taxes were increases, revenues went down by BIG number:
"Sales and use tax receipts were $173 million below the months forecast of $2.517 billion. August cash includes the remaining portion of the final payment for the second quarter sales, as well as the first prepayment for third quarter sales. Year-to-date, the sales tax cash is $249 million below forecast."
"Total Vehicle License Fee General Fund revenue reported in August was $34 million lower than the estimate of $151 million. Year-to-date revenues are $66 million below forecast. "
"Personal income tax revenues to the General Fund were $83 million below the months forecast of $2.637 billion. Withholding receipts were $148 million lower than the projected level of $2.631 billion. "
When will the politicians take an economics class? Raise taxes, lower revenues. Lower taxes, raise revenues.
We need adults in Sacramento, not office holders who play hooky when the economics class is held. So far, only Insurance Commissioner Steve Poizner GOP candidate for Governor has studied economics, he has called for a cut in taxes--will the other candidates do the same? Or will they play the tax/fee increase card as a way to destroy what is left of the State of California?
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In an California Finance Department Report, State revenues are down--but the categories where taxes were increases, revenues went down by BIG number:
"Sales and use tax receipts were $173 million below the months forecast of $2.517 billion. August cash includes the remaining portion of the final payment for the second quarter sales, as well as the first prepayment for third quarter sales. Year-to-date, the sales tax cash is $249 million below forecast."
"Total Vehicle License Fee General Fund revenue reported in August was $34 million lower than the estimate of $151 million. Year-to-date revenues are $66 million below forecast. "
"Personal income tax revenues to the General Fund were $83 million below the months forecast of $2.637 billion. Withholding receipts were $148 million lower than the projected level of $2.631 billion. "
When will the politicians take an economics class? Raise taxes, lower revenues. Lower taxes, raise revenues.
We need adults in Sacramento, not office holders who play hooky when the economics class is held. So far, only Insurance Commissioner Steve Poizner GOP candidate for Governor has studied economics, he has called for a cut in taxes--will the other candidates do the same? Or will they play the tax/fee increase card as a way to destroy what is left of the State of California?
More...