Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California tax revenue $3 billion less than target
LA Times ^ | May 1, 2012

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 ...


TOPICS: Culture/Society; Government; US: California
KEYWORDS: unexpected

1 posted on 05/02/2012 7:34:24 PM PDT by DeaconBenjamin
[ Post Reply | Private Reply | View Replies]

To: DeaconBenjamin

No problem; just increase tax rates/sarc.


2 posted on 05/02/2012 7:38:08 PM PDT by joelt
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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.


3 posted on 05/02/2012 7:38:31 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

Now look what Apple computer has done.


4 posted on 05/02/2012 7:38:42 PM PDT by Vince Ferrer
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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.


5 posted on 05/02/2012 7:38:51 PM PDT by vette6387
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

Bush’s fault!
(/sarc)


6 posted on 05/02/2012 7:42:21 PM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin
"We’re going to have a plan to close that gap when we release the May revision,"

They are going to squeeze blood from the turnips, huh?

7 posted on 05/02/2012 7:43:11 PM PDT by John123 (US$ - I owe you nothing. Euro - Who owes you nothing.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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.


8 posted on 05/02/2012 7:45:50 PM PDT by DB
[ Post Reply | Private Reply | To 1 | View Replies]

To: vette6387

So, you think Brown is doing a sub-par job as governor?


9 posted on 05/02/2012 7:45:58 PM PDT by Lancey Howard
[ Post Reply | Private Reply | To 5 | View Replies]

To: DeaconBenjamin

They don’t understand the people have to have an “income” in order to pay “income taxes.”


10 posted on 05/02/2012 7:46:08 PM PDT by Private_Sector_Does_It_Better (I AM ANDREW BREITBART)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John123

“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)


11 posted on 05/02/2012 7:46:32 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
[ Post Reply | Private Reply | To 7 | View Replies]

To: DeaconBenjamin

Well, THAT was unforeseeable and unexpected.


12 posted on 05/02/2012 7:50:13 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: joelt

No problem. Start drilling for oil.


13 posted on 05/02/2012 7:50:39 PM PDT by smokingfrog ( sleep with one eye open (<o> ---)
[ Post Reply | Private Reply | To 2 | View Replies]

To: DeaconBenjamin

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.


14 posted on 05/02/2012 7:51:08 PM PDT by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: joelt

>> 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. :-)


15 posted on 05/02/2012 7:52:40 PM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: DeaconBenjamin

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!


16 posted on 05/02/2012 7:57:38 PM PDT by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grumpygresh

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.


17 posted on 05/02/2012 7:58:55 PM PDT by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: antceecee

Tax Hollywood.


18 posted on 05/02/2012 8:03:59 PM PDT by EQAndyBuzz (Would you rather eat dog food or cat food? Guess it's Romney 2012.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: DeaconBenjamin

Proving once again what happens when you tax the crap out of something. Duh, Jerry.


19 posted on 05/02/2012 8:22:34 PM PDT by Rembrandt (Part of the 52% who pay Federal taxes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lancey Howard

You’re trying to be funny, right?


20 posted on 05/02/2012 8:25:13 PM PDT by vette6387
[ Post Reply | Private Reply | To 9 | View Replies]

To: DeaconBenjamin

So the Detroitification of an entire state proceeds apace....


21 posted on 05/02/2012 8:26:28 PM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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!)


22 posted on 05/02/2012 8:47:23 PM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grumpygresh

Yes, starve the beast. Boycott CA products and make their shortfall larger.


23 posted on 05/02/2012 8:51:12 PM PDT by wrencher
[ Post Reply | Private Reply | To 14 | View Replies]

To: DeaconBenjamin

Better check Steve Jobs’s other pants. :)


24 posted on 05/02/2012 8:54:21 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
[ Post Reply | Private Reply | To 1 | View Replies]

To: joelt

“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...


25 posted on 05/02/2012 9:37:47 PM PDT by Road Glide
[ Post Reply | Private Reply | To 2 | View Replies]

To: DeaconBenjamin

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.


26 posted on 05/02/2012 9:43:12 PM PDT by NoLibZone (I trust Sarah Palin,Dick Cheney, Cain,Perry,Bachman Anyone but Obama,because I trust their judgment.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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.


27 posted on 05/02/2012 9:44:22 PM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DeaconBenjamin

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.


28 posted on 05/02/2012 9:47:54 PM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
[ Post Reply | Private Reply | To 1 | View Replies]

To: The Antiyuppie
Well, THAT was unforeseeable and unexpected.

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).

29 posted on 05/02/2012 9:54:47 PM PDT by SteveH (First they ignore you. Then they laugh at you. Then they fight you. Then you win.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: EQAndyBuzz

Ya......
U can start with George Cloony


30 posted on 05/02/2012 10:29:13 PM PDT by hapnHal (hapnHal)
[ Post Reply | Private Reply | To 18 | View Replies]

To: DeaconBenjamin

gov brown needs to live within his means.


31 posted on 05/02/2012 11:21:23 PM PDT by television is just wrong
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lancey Howard

YES!


32 posted on 05/02/2012 11:22:42 PM PDT by television is just wrong
[ Post Reply | Private Reply | To 9 | View Replies]

To: antceecee
Remember, California was the only state that went after Federal retirements.

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.

33 posted on 05/02/2012 11:23:26 PM PDT by Nip (TANSTAAFL and BOHICA)
[ Post Reply | Private Reply | To 17 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson