http://www.sacbee.com/opinion/california-forum/article185741643.html
“California’s state budget seems healthy, but it isn’t. Brown should spend some political capital on tax reform”
From the article link in Sacbee:
“That’s because the state depends on income taxes for 70 percent of its general fund revenues and the top 1 percent of taxpayers account for half of those income taxes.”
Testimony for the extraordinary wealth in this state. Even many over $120k pay a pittance in state income tax. They have pushed the income tax so high up the income ladder that the top 1% pay over 1/2 of the tax. The bottom 60% pay NOTHING.
And that’s with a $180bil budget.
“Tax Reform” being advocated is to broaden the tax base. But, the Bee does not propose to do that in a conventional way...but raising rates at lower incomes.
They propose to effect a Capital Gains Tax. There’s some debate on whether that tax should be limited to realized gains, or if they will tax paper gains.
No sh!t. Paper gains.
Oh, and the budget is projected to have a $19bil surplus. Democrats have already penciled in spending for $20bil. $5bil of that for healthcare for illegals.