There Is No California Comeback—Income Tax Revenues DOWN 6% for First Six Months

clinic times; font-size: 16px;”>By Stephen Frank

medications times; font-size: 16px;”>A few months ago I had the opportunity of meeting Stephen Moore at a Franklin Center bloggers conference in Virginia. He is as entertaining and direct in person as he is on TV or in this article. Importantly, he is willing to state facts that are too confusing for our Governor to understand. Remember, a couple of weeks ago Jerry Brown was trying to figure out how to handle a $30 billion debt along with an multi-billion “water bond” where most of the money goes to special interest and less than a third MIGHT be used to create water storage. Oh, per the LAO, California has a $340 billion, ten times more than our confused Guv Brown knows about.

First, the tax-receipt bubble may have already burst.

A 3 percent retroactive tax hike approved in November 2012, hit wealthy Californians on their prior earnings, and took the state’s top effective tax rate to 13 percent. Revenues shot up by more than 20 percent in fiscal 2013 thanks to the retroactive tax bills wealthy Californians had to pay last year.

But so far this calendar year, according to the latest data from California’s State Controller’s Office and the Rockefeller Institute, personal income-tax revenues fell by 11 percent in the first quarter of this year and more than 6 percent through June.

In fact, the decline through the first quarter, according to the Rockefeller Institute, was more than any other state.

Steve Frank: Is the the publisher and editor of the California Political News and Views.  Mr. Frank speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows and is a full time political consultant.


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