CA: Income tax revenues down

Sac Bee ^ | 1/24/07 | Clea Benson

[NormsRevenge]

Estimated personal income-tax payments, a key predictor of California's financial situation for the year ahead, are significantly down from expectations in recent weeks, the Legislature's nonpartisan budget adviser said Wednesday.

In December and January, Californians paid about 15 percent less on income from investments and other non-salary earnings than Gov. Arnold Schwarzenegger predicted earlier this month when he proposed a state budget. Overall, the state has earned about $1 billion less than expected since December.

The drop was offset by an up tick in corporate tax payments, which were about $350 million above projections.

Legislative Analyst Elizabeth Hill cautioned lawmakers about the apparent slowdown in personal incomes at a hearing on the governor's spending plan for the fiscal year that begins July 1.

[goldstategop]

Politicians don't budget like families do. They just borrow when things get dire.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[volunbeer]

It's because they are all moving to Washington state and Oregon.

[goldstategop]

And Colorado. I could afford a big home here. I couldn't even buy a starter dump back in California!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[volunbeer]

Californians spreading everywhere.... and everywhere Californians go they raise the price of real estate.

I don't mind because I am sitting pretty with my home and some other properties.

Colorado is a beautiful place and is definitely on my list of places I could live!

[goldstategop]

I live in a small mountain town here in Colorado. Its not the big city but the sight of the surrounding mountains more than makes up for the inconvenience of a drive to the nearest big city.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[FairOpinion]

"The drop was offset by an up tick in corporate tax payments, which were about $350 million above projections. "


So there is no problem.

[Chairman Fred]

Note the choice of words:

"...the state has earned..."

No, that should be "stolen" or "confiscated".

[arthurus]

You beat me. I wonder how the revenues are faring in Oregon and Washington and maybe Colorado.

[NormsRevenge]

Thanks, Baghdad Bob.

[Torie]

I guess my latest estimated tax check didn't stem the tide. Oh dear.

[goldstategop]

Government is a fearsome master; it is always force - overwhelming force.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[volunbeer]

I can't speak for the others but property taxes in Eastern Washington have gone way up!

Real estate was probably undervalued in these areas anyway (outside Portland and Seattle) but there is no doubt that some of the huge gains in property values are directly linked to the number of Californians who cashed out huge equity in their homes, fled the state, and drove the prices up elsewhere.

They are not complaining at the assessors office.

[FairOpinion]

I was quoting from the article.

Are you having a problem with simple math?

One part drops, the other part increases by the same amount, the total is the same, so the overall revenue is as expected.

I guess you are disappointed, you are so happy to post bad news.

[arthurus]

I guess California is just gonna hafta annex Oregon and Washington.

[volunbeer]

I hope not. I think most of them I have talked with are thrilled to be out of California.

One of my co-workers parents cashed out their house in San Diego a few years ago to move out of state. They made about 700K on it and now they live on the water up here.

[NormsRevenge]

Overall, the state has earned about $1 billion less than expected since December.

The drop was offset by an up tick in corporate tax payments, which were about $350 million above projections.

--

Oh I just read it wrong, is that it? 1 billion minus 350 million = 650 million. Please enlighten me, or are you just another product of the liberal california educational system?

and as to

--you are so happy to post bad news.--

It's nothing personal, I just get tired of your pom pom postings. methinks you have nothing more than an axe to grind here with many who see thru your Progressive pom pom routine, FO. Silly TWirP!

[goldstategop]

California could abolish its state personal and corporate income tax and set the stage for an economic boom. But the political class's mindset here is on squeezing the taxpayers hard for every last dollar. And because of the burden on higher income tax earners, people are leaving California and not looking back.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[taxesareforever]

Oh really? Might it be that many are bailing out of California?

[goldstategop]

If nothing changes, more people will follow in my footsteps. High taxes, the high cost of housing and the high cost of living are prompting many to relocate. Today, the Golden State is a very expensive dream.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus