California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below 2012-13 budget projections. You have to admire Mr. Chiang's capacity for understatement as he noted that "revenues disappointed." Yes, and J.P. Morgan's whale trade was a $2 billion rounding error.
Among the biggest surprises is a 21.5% or nearly $2 billion decline in personal income tax payments from what Governor Jerry Brown had anticipated. This reinforces the point that when states rely too heavily on the top 1% of taxpayers to pay the bills, fiscal policy is a roller coaster ride. [Emphasis Added]
Correcting misconceptions about markets, economics, asset prices, derivatives, equities, debt and finance
Sunday, May 13, 2012
As California Raises Tax Rates, Tax Revenues Fall Short
Posted By Milton Recht
From The Wall Street Journal Opinion, "California Ugly: Soaking the rich isn't working on the left coast." :
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