Officials in Gavin Newsom’s state suffer after scheme to milk taxpayers even more blows up in their faces

Democrats keep doubling down on the same failed policies.

Then they blame Republicans when their plans go haywire.

And officials in Gavin Newsom’s state tried to milk taxpayers even more with this scheme that backfired.

California has become a one-party state.

Democrats enjoy a supermajority in the state legislature, so every bad idea has a chance to get enacted into law.

Mansion tax

In Los Angeles, the city passed a “mansion tax” that would hit properties that sold for over $5 million with an additional 4% tax and properties that sold for over $10 million with an extra 5.5% tax.

The new scheme to soak “the rich” was expected to raise between $600 million and $1.1 billion, but only drew $215 million.

Since leftists do not understand economics, they did not anticipate that homeowners would sell their properties in advance of the law going into effect.

People moved to Beverly Hills, Santa Monica, and surrounding luxury areas to avoid the tax, which cratered the market in Los Angeles proper.

Home sales in L.A. dropped by nearly 70%.

Local real estate developer Hooman Ghaffari called the so-called mansion tax “a sham” that has “yet to come close to meeting stated goals” according to the Daily Mail. 

He also said the “mansion tax” has made new developments “financially unworkable.”

The tax was intended to pay for homeless shelters and low-income housing, and with a shortfall of over $600 million, Angelenos are going to get hit with taxes in other ways.

For example, the gas tax, the highest in the country, will have to increase.

Sales tax will likely creep up again; some cities in the Greater Los Angeles area have hit an eye-popping 10.25% sales tax.

“Woke” mayor

The Daily Mail also reported far-left Mayor Karen Bass said that the mansion tax was necessary for funding “real solutions that will help keep people in their homes and create more affordable housing.”

Bass narrowly defeated Rick Caruso, a pro-business real estate developer, in the last mayoral race, which shows that elections have consequences.

These types of policies can hollow out cities.

Just ask Detroit, which was once the richest city in the country until bad policies kneecapped the auto industry.

Democrats believe that the Golden State can endure all of these taxes and burdensome regulations, but even a state with so many natural advantages can reach a breaking point.

Stay tuned to Blue State Blues for any updates to this ongoing story.