Don’t Tax Me, Tax The Rich Guy Behind the Tree

A key reason for the periodic feast and famine in state income tax collections is that most of the taxes are paid by wealthy Californians.

In the 2008 tax year, the most recent one for which the state has complete statistics, the 118,349 Californians with income of $500,000 or more contributed $16.9 billion — almost 41 percent of the $41.7 billion collected.    Read more »

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Gov. Jerry Brown Weighs In on Raising Taxes, Targets the Wealthiest, Temporarily

An Open Letter to the People of California

 December 5, 2011 

When I became governor again—28 years after my last term ended in 1983—California was facing a $26.6 billion budget deficit. It was the result of years of failing to match spending with tax revenues as budget gimmicks instead of honest budgeting became the norm.     Read more »

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Budget Hole of $13 Billion, Mid-Year Cuts to Public Schools Required, Legislative Analyst Predicts

State revenues will be $3.7 billion less than expected, triggering $2 billion in cuts – more than half to public schools – according to an economic forecast issued by the Legislative Analyst on November 16.

The gloomy assessment of the 44-page California’s Fiscal Outlook includes the state ending this fiscal year with a $3 billion deficit and being an additional $10 billion short of spending commitments in the next fiscal year, which begins July 1, 2012.    Read more »

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Tax Receipts Down in October But That Doesn’t Necessarily Mean Bigger Budget Cuts

California’s cash collections for October were $608 million below the budget’s forecast of $5.8 billion leaving the state $1.3 billion below its revenue targets for the first four months of the current fiscal year.

As part of the budget signed by Gov. Jerry Brown June 30, a series of up to $2.5 billion in cuts – nearly $1.8 billion falling on public schools — will automatically be triggered if revenues for the entire fiscal year are more than $3 billion below budget estimates.    Read more »

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State Auto Sales Up in Third Quarter Over Last Year

 

New vehicle registrations increased 9.4 percent versus the same period last year, according to the California New Car Dealers Association. 

It’s the ninth consecutive quarterly sales increase.  

The association predicts 2011 sales for the full year will be nearly 11 percent higher than 2010. 

“Recession weary Californians are starting to replace worn-out cars,” said the association’s chair, Steve Snyder, who operates Gold Rush Chevrolet-Subaru in Auburn.     Read more »

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The State of the State’s Economy is Sluggish, Brown Administration Reports

The important budget news in the state Department of Finance’s September bulletin isn’t that the California took in $62 million less than expected and is now $654 million below forecast for the fiscal year that began July 1.

Being short revenue is one of many considerations influencing whether spending cuts approved as part of the budget deal in June of up to up to $2.5 billion – more than 75 percent falling on public schools — will be imposed beginning on the first of next year.    Read more »

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September Personal Income Tax Receipts Beat Predictions

Income tax collections for September appear to have exceeded the nearly $4 billion expected by state budget writers.

Although a relatively small factor in determining whether up to $2.5 billion in triggered spending cuts – almost $1.9 billion to public schools — will need to be imposed in January, meeting revenue estimates certainly doesn’t worsen the state’s fiscal situation.    Read more »

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State Unemployment Rate Inches Up in August

California’s unemployment rate increased slightly form 12 percent to 12.1 percent in August, a loss of  8,400 during the month, according to a September 16 report issued by the state Employment Development Department.

The state’s workforce, not counting seasonal farm jobs, was just over 14 million — a net year-to-date gain of 98,500 jobs over 2010.    Read more »

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More Voluntary Check-Offs Vie for Space on State Tax Forms

Californians feeling generous on April 15 could kick in for other causes besides sea otters under bills awaiting action by Gov. Jerry Brown adding voluntary check-offs to state tax forms.

On September 1, the Democratic governor signed a bill extending the stay of the Sea Otter Fund on Page Three of the Franchise Tax Board’s Form 540 until 2016.    Read more »

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State’s Fiscal Picture a Bit Brighter in August, Says Controller

California’s August revenues were nearly $135 million above the projections in the recently enacted budget, State Controller John Chiang announced September 9.

Income taxes were above projections by $127.4 million.  Sales taxes were up $8.6 million and corporate taxes were up $46.7 million, Chaing said in his monthly cash statement.

Revenues collected in July, however, were nearly $539 million less than anticipated in the budget.    Read more »

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