California faces $12-billion deficit pending China stock market crash

California’s state of affairs continues to weaken amidst increased tax rates, absurd regulations and enormous welfare payouts, such as its decision to fund healthcare for undocumented minors, forcing the middle class onto the brink of extinction.

Taking its place is the “one percent,” as California houses more billionaires than any other state. These billionaires pay a whopping 50 percent of the state’s taxes,  unveiling an unstable market that’s vulnerable to a $12-billion deficit if China’s stock market fails to recover.

Breitbart reports:

“With the ‘one percent’ paying more than 50 percent of state taxes, a sustained stock market crash would shrivel California’s ‘one-time’ capital gains taxes and throw the Golden State back into a financial crisis.

“As Breitbart News recently warned, in ‘California is Greece, but with Capital Gains,’ if the China stock crash continues, California could soon face a world of bad debt.

“Sacramento public policy has created a barbell economy by wiping out the middle class through a combination of ferocious tax increases, ludicrous regulations and ultra-high welfare payments. As a result, California has an uber-wealthy class of billionaires living in sheltered liberal enclaves, while achieving a poverty rate of 23.4 percent that is the highest of any state in the U.S. and higher than Greece’s 22.3 percent poverty rate.

“The top 3 U.S. industries for producing billionaires are 1) investments (110); 2) technology (84); and 3) media (43). That explains why California, with 141 billionaires, is still the top state for those who want to strike ten digit gold in America. California actually has more billionaires than any other country, except the U.S. and China (and that may be changing).

“With half of the state’s billionaires living in the Bay Area and Silicon Valley, California also has two of the three cities with the highest concentration of billionaires on the planet. The total combined wealth of California billionaires is estimated to be $560.1 billion, which is more than the GDP of 49 countries, including Argentina, Poland and Taiwan.”

Sources:

Breitbart.com

Breitbart.com