You heard it here first!
Two of the Democratic strongholds are in for big trouble financially in the near future. First let’s consider Cook County, IL(Chicago). The American College of Cardiology (ACC) just this morning at 9:36 EST, cancelled its annual convention scheduled for Chicago at the end of this March. In the past, this convention has had upwards of about 15,000 attendees. With drug company reps, and spouses of physicians and nurses, this number typically rises considerably. Now in one fell-swoop, the rug was just pulled out from under The Windy City. The sales tax rate in Cook County (Chicago) is one of the highest in the country, and so the millions of dollars that was going to go into the city’s coffers . . . Poof! Gone! Hotels, restaurants, and their suppliers . . . suddenly nada, and big big loss of tax revenue for the city. Likewise, taxis, ubers, airport shuttles, etc., also nada, and so it goes. Less and less tax revenue for a city already deep in the hole.
The other big Democratic stronghold that will find itself in big trouble because of COVID-19 is California. As I am sure most everybody is aware California has one of the highest income tax rates in the country. When a recession hits, and make no mistake there will be a recession because of COVID-19, states with highest income tax rates will be hit the hardest. Hollywood will take a significant hit, as who is going to want to go to a movie theater and sit with a lot of strangers? A big hit to Hollywood revenue means a big hit to California. Less income to Hollywood means less tax revenue to California. California has three NBA teams and if these games are cancelled or played before empty stadiums, another big hit to the Golden State. Likewise with the five Major League Baseball teams. Apple has been making most of its iPhone components in China, and less iPhones means less Apple revenue, and so less tax revenue for the Sacramento politicians to spend. Here I have mentioned only the big players in California, but coming recession-associated job layoffs will take another big toll on Californians taxable incomes.
Californians, gird you’re loins.
You heard it here first!
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