Texas cuts spending, tax revenues go up:
In 2011, when it looked as if Texas was facing a multi-billion-dollar
budget deficit, the Texas Legislature cut spending, especially funding
for education, Bloomberg notes. However, partly because of the fracking
boom, revenues from the sale of oil and gas soared, bringing in
unexpected tax revenues. The jobless rate also declined sharply,
currently down to 6.2 percent. Revenue from sales taxes has increased as
Meanwhile, California has lost over $1 billion in tax revenues in less than two months by increasing spending and tax rates:
After Proposition 30 passed on November 6, 2012, the State of California experienced a decline in the total state revenue for the month of November. California State Controller John Chiang reported that the total revenue for the month of November declined by $806.8 million, which is 10.8 percent below budget.
The State of California experienced a decline in its revenue as several of the high income earners have relocated to other states, and have also relocated their businesses out of state. This led to a decline in corporate and income tax revenues by more than $1 billion.
It’s 2013. How is it possible that any government, at any level, is still using static revenue models? At some point, inept ideology can only be described as willful idiocy.