Skip to comments.Weak tax revenue to increase California budget deficit
Posted on 04/26/2012 2:07:04 PM PDT by SmithL
With tax revenue slowing to a trickle as the end of April draws near, the state's top fiscal analyst predicted late Wednesday that California would be "a few billion dollars" shy of Gov. Jerry Brown's budget projections through June 2013.
The nonpartisan Legislative Analyst's Office said total personal income tax collections would likely be more than $2 billion below Brown's expectation of $9.4 billion for the month. Because the state was already running behind, it would mean the take from income taxes would be $3 billion shy for the fiscal year that ends June 30 compared with Brown's updated January projections.
Corporate taxes are also likely to trail Brown's forecast by about $450 million for the fiscal year so far, according to the analyst.
Unless sales taxes are robust, that means the state would be about $3.5 billion behind for this fiscal year, and likely a "few billion dollars" through the budget cycle that ends in June 2013, the Legislative Analyst's Office estimates.
(Excerpt) Read more at sacbee.com ...
The difference between the 2000 census and the 2010 census is that while California’s population increased dramatically the state lost a net of 800,000 wage earning tax payers to other states, principally Arizona, Texas, and Nevada.
My family being among that number as well.
Collect back taxes owed for starters and discourage anyone from getting in that situation in the future...
I guess the only answer is for the Dimocrats to raise the taxes. You know, bring in more money and make the rich pay their fair share. That should solve the problem.
The marginal California state income tax rate for a single person without dependents and $40,000 annual wages is 9%.
Should be good for another 200 point rise on the DOW. Better than expected catastrophic numbers boost the markets.
Historically, this has always been the downfall of state socialism.
They ain’t gettin’ mine anymore.
California did not implement the welfare reform measures passed in the Clinton years at the federal level which limits welfare to 3 years. In California there is no limit so you can squeeze out babies and collect welfare tell the cows come home. So what has happened? You’ve been swamped with illegals and their anchor babies as well as welfare queens from all over the country. That plus the public employee unions own the state and local governments and have some of the best retirement plans in the world.
We’ve reached the point that the takers out number the providers and they are voting themselves ever more benefits. Also, the idiots that they elect to give them their benefits are economic illiterates that have loaded down this state with laws and regulations that are choking off business who are packing up and leaving in droves. Now they want to tax millionaires (defined NOT as someone that makes a million dollars a year but someone the MIGHT make a millions dollars over his/her life time so basically anyone that makes over $100k is a millionaire) which will just drive more people out of this God forsaken state.
Wish I could leave but family and a high paying job have me trapped here for now. Hopefully not too much longer though and I’ll be able to bolt along with all the other providers for states that still have some sanity left.
“The marginal California state income tax rate for a single person without dependents and $40,000 annual wages is 9%.”
Add another 8% or so of sales tax plus they tax long term capital gains as income and a lot of people are paying the state of California more in taxes than they are paying the Feds.
I actually hope that Brown’s whole damn plan fails miserably and that includes his tax increase referendum on the November ballot. What a fool to try and cover his enslavement to the public unions by ruining this once great state. What a coward he is. At least when the status quo stops there is a chance that things will change for the better. Why can’t we Californians get a clue from other states about how fiscal and social policy should be run? Having said this, its probably too late. Let the chaos begin.