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 ...
So the Detroitification of an entire state proceeds apace....
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!)
Yes, starve the beast. Boycott CA products and make their shortfall larger.
Better check Steve Jobs’s other pants. :)
“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...
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.
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.
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.
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).
Ya......
U can start with George Cloony
gov brown needs to live within his means.
YES!
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.
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