Skip to comments.CA: Sales taxes may fall short of already gloomy forecasts
Posted on 05/03/2009 5:17:30 PM PDT by NormsRevenge
The state may get more bad fiscal news this week when the state controller makes his final tally of April sales taxes.
It's no secret that the recession is taking a toll on the state's thinning coffers, but more troubling is that revenue is coming in slower than pessimistic forecasts.
April, the state's largest tax-collection month, has fallen short of expected revenue by more than $1.8 billion in personal and corporate income taxes. The state was $750 million behind projected tax collection on April 1.
There's good reason to believe April's sales tax receipts may disappoint, too. New car sales the first three months of this year fell by 43 percent compared with the same period last year, according a report last week by the California New Car Dealers Association.
Auto-related sales tax (car sales, parts, etc.) make up about 20 percent of the state's sales tax receipts, said Paul Warren, a revenue and taxation analyst for the Legislative Analyst's Office.
(Excerpt) Read more at sfgate.com ...
Unfortunately for California, state governments cannot file bankruptcies.
I read a news bite recently saying that legislators are thinking about rewriting the constitution to eliminate propositions. They will sell it as a cure for all the chaos. Then they will raise taxes without mercy.
I wouldn’t be buying any
Municipal Bonds Issues from California
Are they going to force people into staying in the state?
I see a Catastrophic drop in real estate “values”
Why do we continuously elect idiots to run government?
Read the comments at your link. I like this one, it made me laugh:
The answer is simple: keep raising the sales tax until the revenue equals the amount govt wants; but try not to have it exceed 50%, because at that level people might reduce their purchases. Charge $700 for each parking ticket and bridge tolls should be $20, each way. This is simple, anyone can govern. And of course we need at 25% income tax plus a 30% tax on all home sales and purchases; it is only fair. Finally, it seems too low to only have to pay $74 to park in front of your own home in SF; that should be $400, every 6 months. In SF we need to raise the fee for construction permits to $6000 up-front plus 10% of estimated total cost of the project, plus 7% for the official permit expediter plus 9% in “donations” to the nonprofits favored by the SF Politburo.
I actually hope they do something like this. It couldn’t happen to a better state.
That’s because we aren’t buying much.
Because taxes are too high.
And when people are broke, they don’t buy much.
Maybe someday our esteemed leaders will figure this out.
Well then raise them some more to make up for the shortfall ...
And Nancy wants tax the rest of us to bail out CA.
I won’t even read the article because I know there will be absolutely ZERO references to the costs of supporting the illegals in California, and how most of the budget shortfall would disappear if they pulled the plug on the freeloaders.
Even more remarkable is the abject failure and unwillingness of ANY national Republican figure to use California’s situation for what it is, a clear example of what happens with liberal one party rule. And please spare me the ‘uh, but you had a republican governor......’. Arnold made some efforts early and he quickly realized that with the legislature in place and the accumulated problems in this state, there was nothing he could do. I’m no fan of Arnold’s, but he had no chance.
I'm doing my best to see that it does.
Is that true? how come? what DO they do when they can't pay bills? has any state ever defaulted?
The GOP is an enabler party. The Democrats wear the pants, and Republicans come along and clean up the vomit, sell the house to the creditors and find a lower quality rental. The Republicans are cowards, they try to 'grow our way out', but don't confront mean old drinking thug Democrats cause he might call him racist, or slap him around a bit. So, basically, the GOP gets a second job, fixes things up, a bit, until the Democrats talk the country into how much fun it would be to go on a financial bender.
You mean what do YOU and your grand kids do when YOU can’t pay THE STATES bill? Right?
Government has total tax power. They can, in theory, take everything you got, and everything your children will ever have.
So what this is basically saying is instead of the 9.75% sales tax I pay in my county I can look forward to maybe 10% of 10.25% in the next year. Wow I can’t wait counting the days till I can leave this state it can’t be soon enough!
Arrrnold is quite possibly the worst big-state governor in history.
It’s not that hard to save money, Mr. RINO. If the states had merely limited spending to inflation and population growth over the last ten years, most would have huge surpluses today. But Arrrrnold and other liberals have been busy creating vast new programs and spending buckets of money. Now we are reaping the whirlwind.
It's just warm up practice for the "fair tax". Imagine how little you'll buy when the tax is 23% or 30% depending on whose math you use. If the state thinks it is a good idea, you could have 30% federal "fair tax" and 10% state "fair tax". As for those "progressive" income taxes...the commies will never let go of those things.
About half the people in this country respond like programed animals to whatever the media tells them. Buy! Buy! The economy is wonderful! Obama, dear leader, has turne the economy around by nationalizing banks and the car industry!
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