After years of debt, deficits and budget cuts, it may come as a surprise to learn that our state government is flush with cash. But you wouldn’t know it by the talk of tax increases coming out of Sacramento.
First the facts:California is outspending other states – As the Sacramento Bee’s Dan Walters recently reported, census data shows California state spending jumped 7.5% last fiscal year and is well above average when compared to other states. The Governor’s proposed budget is huge – In January, Governor Jerry Brown unveiled a $113 billion budget proposal—the largest ever in California state history. If there’s any criticism of the Governor’s budget so far, it’s that he is underestimating revenues. The Legislative Analyst’s Office recently reported that current fiscal year revenues alone will exceed the Governor’s forecast by $1 to $2 billion or more. California taxes are really, really high – Californians pay some of the highest income, sales and gas taxes in the nation. According to the Tax Foundation, many small businesses face top marginal tax rates … Read More