This just in from Sacramento: California now faces a $68 Billion budget deficit. Wasn’t it just last year California Governor Gavin Newsom was boasting of a big budget surplus? What happened??
Meanwhile, on the other side of the country, Florida is projecting a $7 billion surplus. This despite giving record amounts to the public schools, school choice programs, and for teacher raises.
The most amazing part of this story: Florida has no income, capital gains, dividends, or estate tax. California taxes these at as much as 13%. Even the sales tax is higher in California than in Florida. So is the gas tax.
What’s the lesson?
Well, first, Gavin Newsom is fiscally unfit to be president of the United States. Second, balancing the budget by continually raising taxes is a fool’s errand. The state with the highest taxes has the biggest deficit.