It's hard to believe now, but Jerry Brown once ran for President as a reformer who favored a flat tax with a 13% top federal rate. That was 1992. Nowadays in his second stint as Governor, he's running to give California alone a higher top income-tax rate...What happens when that golden goose is killed or the turnip is bloodless? I fear that day is not far off.
All of this is said to be necessary to balance a $9.2 billion budget deficit. So what else is new? Mr. Brown expects about $9 billion in added revenue, up from $7 billion in his first package. But the state Legislative Analyst's Office has already told Mr. Brown that he's hallucinating to think he can get that much money from a corner of the taxpayer base.
The top 1% in California pay between one third and half of all state income tax revenues, depending on the condition of the economy. California already has the fourth highest income tax in the nation....
None of these facts matter to Mr. Brown or his allies because the tax increase is simply about the political power to deliver money to the interests that live off government.
Monday, March 26, 2012
Why Might California Be Doomed?
Here is yet another data point: