California Tax Receipts Crashing

John Seiler:

As I reported last week, there was little likelihood that California would get $4 billion in extra tax receipts the rest of the year. Yet two weeks ago the Democratic Legislature passed a “balanced” budget which included that assumption, and Gov. Jerry Brown signed it into law.

Controller John Chiang just reported that May and June tax receipts were $351 million less than the budget assumed. Capitol Alert quoted Chiang spokesman Jacob Roper: “”We don’t have a detailed cash flow (of Brown’s budget) to break it down. We can’t look at it and say whether it was softness in corporate tax refunds or excise taxes or withholdings being down.”

What this means is that the budget never was balanced. And that means Chiang again should dock the legislators’ pay until they pass a balanced budget — meaning more cuts in government waste — as required by Proposition 25.

The state’s severe anti-business climate obviously is having a toll. Who would want to start or keep a business here?

The Legislature itself just passed the Amazon tax, which killed 25,000 state businesses. Jerry “Jobs Killer” Brown signed it into law.

There should be consequences for such irresponsibility.

Dock the legislators’ pay until they really balance the budget.

And recall Jerry Brown.

July 12, 2011

 

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