In yet another phase of the eye-rolling saga that is California’s perpetual fiscal crisis, Governor Brown announced today that California is likely to collect $6.6 billion more in revenue over the next two years than it had anticipated.
At least he is honest.
From where did this windfall come?
“Jay Chamberlain, the head of financial research for the state, said the increases came primarily from the top of the income spectrum, generally people who made at least $200,000. But Mr. Chamberlain said it was impossible to know precisely what had driven up their income. And a large portion of the increase came from the capital-gains tax, a volatile base that officials say is nearly impossible to predict.”
It seems again that the “wealthy” saved California’s fiscal rear end, yet again.
However, the Governor still needs to close a $10.8 billion budget gap.
Before this news came out, State Republicans were demanding spending cuts rather than tax increases.
This new piece of news now strengthens their hand.