Posted on 05/02/2012 7:34:19 PM PDT by DeaconBenjamin
The legislative analyst’s office has a new number that is adding to California’s financial headache: $3 billion. That’s the total amount that tax revenue has lagged behind goals set by Gov. Jerry Brown’s administration in the current fiscal year.
The shortfall was detailed in a report released on Tuesday by the nonpartisan office, which provides budget advice to lawmakers.
Much of that gap comes from a disappointing April, the most important month for income taxes. Income taxes were $2.07 billion short of the $9.43-billion goal, and corporate taxes fell $143 million short of an expected $1.53 billion, according to the report.
When April's poor results are tacked on to earlier shortfalls, the state has fallen about $3 billion behind tax goals, the LAO said. The ratings agency Standard & Poor's already cautioned Tuesday that poor tax revenue was imperiling California's financial recovery.
It's unclear exactly how much this year's budget deficit will grow because of the tax shortfall. Brown's administration estimated the gap at $9.2 billion in January, but has since said it will grow.
"The number is going to be larger," said H.D. Palmer, a spokesman for Brown's Department of Finance. "We’re going to have a plan to close that gap when we release the May revision," the updated budget proposal that is expected by May 14.
(Excerpt) Read more at latimesblogs.latimes.com ...
No problem; just increase tax rates/sarc.
and even though voters passed a Constitutional amendment to stop paying lawmakers if the budget is not balanced, they will still get paid.
It will be “deemed” balanced I guess.
Now look what Apple computer has done.
As a life-long Californian, I am reveling in the financial trouble Bastard Brown is in, because he’s the one who set the wheels in motion for this disaster when he was Boy Governor thirty years ago. As the campaign signs used to say “If It’s Brown, Flush It!” I hope the SOB has a heart attack and dies in office. He’s the most worthless POS to ever draw a breath. Now, ask me what I really think.
Bush’s fault!
(/sarc)
They are going to squeeze blood from the turnips, huh?
California is run by idiots.
The more they demand, the less they get and the more long term damage to California’s businesses/tax base is done. Businesses and wealth people that leave the state leave for good to put down roots somewhere else that doesn’t want to punish them for being productive and good citizens.
So, you think Brown is doing a sub-par job as governor?
They don’t understand the people have to have an “income” in order to pay “income taxes.”
“They are going to squeeze blood from the turnips, huh?”
Why, by TAXING THE RICH PEOPLE, STOOPID!!!
(Which means the Working Poor and Middle Class, of course)
Well, THAT was unforeseeable and unexpected.
No problem. Start drilling for oil.
Good news. The CA government must be deprived of income. What we need to see is some real pain. Then, they will be like a Heroin addict going through withdrawal. They must hit rock bottom before they can admit to a problem and begin to take the steps to cure their addiction. And Uncle Sam cannot be the enabler by feeding the addiction.
The Leftist billionaires and mega millionaires need to feel some pain and blowback from the restless underclasses and union parasite classes. What we need to see a fracture of the Leftist coalition; a war between the union parasites, the enviros, welfare parasites and the Leftist moguls. After they have destroyed each other, the entrepreneurs and investors can come in and carpet bag the state.
>> No problem; just increase tax rates...
Yeah, that, and cook up some pretext to shut down every U-Haul truck and trailer rental outlet in the state. :-)
I thought the tax from the Facebook IPO was going to save the day ... apparently Californicate is not going to get 5 or 6 billion on a 5 billion dollar IPO. Oh well, can probably just raise taxes on movie stars, public employees, unions and any business (that hasn’t left) ... as these will be the only people with any money!
No, they will never give up. Next step they will be coming to your door demanding you pay them tax on your garage sale transactions, claim you owe them on internet transactions (they are already doing this) and pay up on those girl scout cookies you bought and paid no tax on. I could see them hauling a few people off to jail just to make a point.
Tax Hollywood.
Proving once again what happens when you tax the crap out of something. Duh, Jerry.
You’re trying to be funny, right?
So the Detroitification of an entire state proceeds apace....
Brown averred the problem to be a complete paradox, “I don’t understand it!!!??? We keep raising taxes and the revenue keeps going down! This time, we raise taxes to 100% of everyone’s income. And when that doesn’t work, we’ll go to 150%”
The funny thing is, these retards can’t provide a single historical example of socialist policies EVER creating prosperity. And yet they are more unshakable in their beliefs than a Jihadist suicide bomber, (and with more destructive power!)
Yes, starve the beast. Boycott CA products and make their shortfall larger.
Better check Steve Jobs’s other pants. :)
“No problem; just increase tax rates/sarc.”
Why the “/sarc”?
Because this is EXACTLY what they’re going to do.
And afterwards, revenues will drop even further...
Just 6 months ago Brown said we had too much money.
He even signed us up for a brand new entitlement program called the dream act.
My cousin works for a software company in Irvine. The company has its heaquarters in Taiwan. They are pulling up stakes and moving back to Taiwan. My cousin is moving to their operations in Manila.
I remember when Moonbeams was governor the first time. The LA Slimes at that time was leading the charge to push his sorry ass out.
One would think that the largest state in the union would have more accurate economists and accountants on hand so that this shortfall could have easily been avoided by simply not spending as much in order to match the predicted tax revenues.
But no. The California economists and accountants, whoever they were, simply failed to come up with accurate predictions.
So the next time you hear an economist say that the economy is recovering (for the Nth time), try to keep in mind this experience of California.
California evidently has the choice of either to raise taxes, resulting in driving even more taxpaying, jobs-producing business away, or suffer a bad debt rating, resulting in even more curtailed services. And unless the direction is changed, the rest of the nation may follow California's lead.
--No matter how often the economists preach the mantra of recovery just around the corner (light at the end of the tunnel, whatever).
Ya......
U can start with George Cloony
gov brown needs to live within his means.
YES!
California claimed that if you worked in California for any period of time they were entitled to tax a portion of retirement based on the number of weeks/months/years you lived and worked in California.
Luckily that went nowhere fast because any of the taxes collected would have been more than off set by the costs to establishing and maintain the collection process.
But still it has been seriously discussed a couple of times and I am scared that it isn't dead yet. Why? I was stationed in California from September 1970 to March 1972, TDY for six weeks in 1973, stationed in California from April 1979 through May 1983, plus multiple TDYs from 1985 until 1991. I think the total day count ended up being about 6 years out of 21 years.
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