Wednesday, August 28, 2013

Raising Taxes kills jobs, business? Myth! California proves Republicans Wrong.

Ed Schultz talked about this the other night, and now Wonk Blog picked up the story. It's a big one, because it proves once and for all, tax increases boost state revenues, making them healthy. And isn't that what business is looking for?
California raised a bunch of taxes this year. Its economy hasn’t collapsed: Six months ago I wrote that California was diving into an interesting political and economic experiment: Could it keep adding jobs even after slapping its wealthiest residents with the highest state income tax rate in the nation?

Most of the economists I talked to in the state predicted the tax hikes wouldn’t matter much. A lot of conservatives wrote me to predict the opposite.

What’s happened since? Well, California kept adding jobs, and at about the same rate as the nation overall. The analysts at Beacon Economics in Los Angeles noted recently that California accounted for a quarter of the nation’s net job growth last month. 

One thing, at least, seems clear: The doomsday predictions haven’t come true. California is still recovering. We’ll check in again in a few months to see if the data give us any better idea of whether, and/or how much, higher taxes have dampened that recovery. 


  1. Wow. Liberalism really is a mental disorder. It's too bad you can't see first hand how wonderful the economy is in California. There is a new empty building going up for lease weekly in the greater Los Angeles area. Oakland and Stockton are bankrupt. And what kind of jobs are those? Full time productive jobs that manufacture goods? Nope. Part time low wage and more worthless public sector jobs. Come back in a year or 2 when all the dust settles from businesses running from california and see how great its doing. Schultz is a moron. An idealogue. Liberals can only see whats 2 inches in front of them. As usual you arent seeing the big picture. Tax people more and create fewer jobs. Or perhaps you can explain why unemployment in Spain is 25% with 50% youth unemployment while having a 37% payroll tax? Dude, pick up an austrian economics book. You obviously need to.

  2. Anyone who promotes Austrian economics and denies the FACT that California has the largest drop in unemployment in the US is too full of crap to waste any significant time on.

    Supply-side is only clung to by the corrupt and the weak-minded. Your way has failed, troll. Deal with it