.png)
California: Taxes On Rich Closed The State Budget Deficit
As Jerry Brown seeks his fourth term as governor this year, he’s crowing about balancing the state budget after years of deficits that piled up a “wall of debt.”
Certainly Brown deserves some of the credit.
He moderated the spending ambitions of his fellow Democrats and, more importantly, persuaded voters to enact temporary sales and income tax hikes, the latter only on the highest-income taxpayers.
Those boosts, when coupled with the state’s emergence from the worst recession since the Great Depression, sharply increased the state’s general fund revenue over the last few years, from about $86 billion when Brown was running in 2010 to over $106 billion during the current fiscal year.
But the tax increase accounts for perhaps a third of the revenue gain.
The rest stems from the improving economy and particularly the substantial increases in incomes of the state’s highest-income taxpayers – the chief targets of the 2012 tax increase.
While criticizing the widening gap between “one-percenters” and the rest of us is popular, the fiscal reality is that California’s budget probably would still be drowning in red ink were it not for taxes on income gains by those atop the economic food chain.
State income tax data for 2012, the latest available and the first year of the temporary income tax increase, illustrate that fact.
Read the full story: www.sacbee.com
Follow Larry Elder on Twitter
"Like" Larry Elder on Facebook
No comments:
Post a Comment
Comment Policy:
The author of this blog will attempt to engage in conversation via the comments section whenever possible and recognize the 24/7 nature of the internet. Moderating and posting of comments will occur during regular operational hours Monday through Friday. Comments submitted after hours or on weekends will be read and posted as early as possible, however admins and/or the author is unable to commit to replying to every comment posted.
This is a moderated blog. That means all comments will be reviewed before posting. In addition, it is expected that participants will treat each other, as well as the author and admin, with respect. Comments that contain vulgar or abusive language; personal attacks of any kind will not be posted. Comments that are spam or that promote services or products will not be posted. It is requested that all comments remain on topic.
The Elder Statement blog does not guarantee or warrant that any information posted by individuals on this blog is correct, and disclaims any liability for any loss or damage resulting from reliance on any such information. The Elder Statement blog may not be able to verify, does not warrant or guarantee, and assumes no liability for anything posted on this website by any other person. The Elder Statement blog does not endorse, support or otherwise promote any private or commercial entity or the information, products or services contained on those Web sites that may be reached through links on our Web site.
To protect individual privacy and the privacy of others, please do not include phone numbers, addresses or email details in the body of a comment. Such information will result in removal of a comment.
Thank you for your attention.
The Elder Statement