CALIFORNIA RECESSION HAS STARTED - NEARLY 1 MILLION MIDDLE CLASS LEAVE THE STATE
We've been very vocal about all the problems in California, most of which are self imposed by a Democrat Party running amuck without check and their failed policies and ideologies. The state is the perfect example of how you cannot tax your way to a balanced budget for long, and you can't tax the people and regulate companies to the point of choking them or they will leave. The upcoming California Government Fiscal Crisis will occur in 2018 or 2019.
In a great article by my friend Chriss Street in Brietbart, he outlines the following:
"...California exported 930,000 of mostly middle-class citizens between 2004 and 2015. About 85 percent of those out-migrating were in the working-class middle 20 percent and the next lower quintile of wage earners. Most of the citizens left to seek better economic opportunities in Arizona, Texas, Nevada, and Oregon, according to the Census Bureau. The Independent Institute reported this week that California due to the rising burden of regulatory overreach and the highest taxes in the nation has fallen to the 49th out of the 50 U.S. states in economic freedom. The Political Calculation blog suggests the reason for California economy’s rapid deceleration, and might already be in recession, is the blowback from passing a statewide $15 minimum wage law that went into effect in January 2017 at $10.50, will hit $11 an hour on January 2018, and then jumps each year by $1 until it hits $15 an hour."
California is heading for a major financial shock. Around 166,000 families pay 90% of the tax in the state. When those very wealthy families reach the point where they can take no more of the pain, they will quietly leave and pay no state tax in Florida, Texas, Nevada. Now that these rich families cannot write off their state taxes on their federal returns, we predict that maybe as many as a third of them will leave in the first half of 2018 which will cause a massive shortfall in tax revenue in the state.
STAY VIGILANT AMERICA!!!