
Governor And Leg Analyst Disagree On Revenue Assumptions — Chiang In Catbird’s Seat
It looks like a battle of revenue forecasts is shaping up between Governor Jerry Brown and Mac Taylor, the state’s Legislative Analyst.
Divide number one between the Governor and LAO is over the estimated tax revenues that would come into the state if Brown’s proposal to increase the state’s income and sales taxes makes the ballot and is passed by voters in November. Brown says that these tax increases would result in $6.9 billion in additional revenues. The LAO however projects revenues from those potential higher taxes at $4.8 billion — over $2 billion less than Brown (and that is just for the first year). (Read the Sacramento Bee’s Capitol Alert story on this $2.1 billion divide here.)
The second divide between Brown and Taylor appeared today, when Taylor issued projections for capital gains for Californians at $62 billion — Governor Brown says that capital gains will be $96 billion. That is a large $34 billion difference of opinion, which translates to $3 billion less in tax… Read More