LAO: No ‘fiscal cliff’ with end of Prop. 30 taxes

LAO: No ‘fiscal cliff’ with end of Prop. 30 taxes

No on Prop. 30Someone should come up with a T-shirt reading, “STAY CALM AND LET PROP. 30 END.”

Maybe sell it and make a few bucks for ya. At least before taxes.

California Legislative Analyst Mac Taylor’s recent “The 2015-16 Budget: California’s Fiscal Outlook” forecasts:

“the end of the Proposition 30 PIT [personal income tax] rate increases will not necessarily cause a sudden revenue dropoff—a ‘cliff effect’—for the annual state budget process. Because these rate increases expire at the end of calendar year 2018, it means that state PIT revenues essentially will include an entire fiscal year of Proposition 30 revenues in 2017–18, half a fiscal year of those revenues in 2018–19, and none of the Proposition 30 revenues in 2019–20. Accordingly, if the economy is growing at that time, as our main scenario assumes, then the expiration of Proposition 30 is likely to result in a slowing of PIT revenue growth in 2018–19 and 2019–20, but not an outright decline in PIT revenues.”

So, the main thing is to keep the economy growing. Such as, for example, not increasing taxes even higher by passing expected tax initiatives on the ballot in 2016 and 2018.

Or passing even more extremist anti-business legislation like AB32, the Global Warming Solutions Act of 2006, when — lo these eight years later — Weather.com reported on Nov. 22:

“There have been more than 400 record lows and record cool highs set, covering 43 states, since Sunday. That leaves only five states in the contiguous U.S., all in New England, that have not experienced record cold temperatures this week. 

“On Wednesday morning record lows were broken or tied from New York to Houston. Thursday morning 在线扑克 brought more record cold to parts of the Southeast.”

5 comments

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  1. Timberrrrrr......
    Timberrrrrr...... 6 December, 2014, 08:38

    Oh, they’ll figure out a way to scare the voters into renewing Prop 30. They always do. The kleptocrats in charge have it down to a science. They realize they have to keep the ponzi going otherwise the pensions go up in smoke and they won’t have a way to fund entitlements for the massive impoverished California population, which is still growing by leaps and bounds. Free food, free healtcare, etc…. Cut off the benefits and the same thing happens when Yellowstone Park outlawed feeding the bears from your cars. The bears started tipping over and ramming the cars (not kidding). They forgot how to feed themselves. The only other way California keeps the ship afloat (other than perpetual taxes) would for Brown, et al, to convince Washington DC to allow California to print our own dollars. Then we could follow in the footsteps of Obama, Yellen and the Federal Reserve and print, print, print to keep the ponzi alive (until we couldn’t anymore). Productivity??? 😀 Oh, come on. That’s so yesterday. Run and catch up. This is 2014!

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  2. bob
    bob 6 December, 2014, 19:44

    Now how are we going to continue to pay for college tuition for undocumenteds, more Colliefornia Care, pensions for our dedicated gummit workers, the bullet train, and a million other things if we don’t keep prop 30 tax increases and increase other taxes?

    And with this amnesty deal we will need much more in social services. So we MUST make people like YOU pay more. If you don’t like it move to Somolia. Most of our rulers in Sacramento want to keep the prop 30 tax increases. You are lucky our rulers allow you to keep any of your money. After all, to each according to his need from each according to his ability. We are all comrades, now!

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    • Timberrrrrr......
      Timberrrrrr...... 6 December, 2014, 20:57

      An imbecile should be able to figure out what they’re doing, bob. Obama declares amnesty for 5 million or more – and does absolutely nothing to close the border. Result? Multi-millions of more poor foreigners enter the country to provide a brand new illegal work force for unscrupulous US employers. This continuously dilutes the middle class and creates the rich and the poor. It’s deliberate. Just look how the distribution of wealth has been tranferred to the upper 5% of wealth holders in the last 6 years since the 2008 economic crash. Uncanny. The top 5% of Americans possess about 80% or more of the nation’s wealth. And it will only get worse. Oh, and the democrats in Congress are promoting it. They are no more interested in maintaining a healthy robust middle class than the neocon Republicans are. They want rich and poor. The rich will control the poor. Look how they’ve turned the police force into a military operation with heavy duty military vehicles and machine guns. You don’t think that there’s a reason for that. Did you see how the small town Ferguson cops were armed during the protests? Just like a division of soldiers fighting ISIS in Iraq. It’s obvious what’s going down. You just need to have an open mind and average intelligence to see it.

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  3. Queeg
    Queeg 7 December, 2014, 00:25

    The ball is rolling down the hill.

    No stopping it.

    Huge population increase, a huge Miami West, real estate values and rents go to the moon.

    Cost of Living: NYC-like

    Reply this comment
  4. Timberrrrrr......
    Timberrrrrr...... 7 December, 2014, 22:29

    John, did you happen to read that the Japanese gov revised their nominal annualized GDP downward from -3% to -3.5%? The Nikkei 225 took a major dive late Friday afternoon. Plus, as a result of Abenomics there are record bankrupcies of small businesses due to a weak yen. Keep a close eye on this economic train wreck waiting to happen. There’s a perfect economic storm brewing with 2 category 4 hurricanes vectoring from opposite directions preparing to merge and hit Japan and continue on in the direction of California. Seriously. Stay vigilant on this one. When it pops it’s going to be heard around the world.

    Oh, and then there’s a democrat from Conn. named Himes who is pushing a bill that puts the taxpayers on the hook for future derivative contracts that blow up on Wall Street. I’m serious. Himes is a former Goldman employee. The WS lobbyists are trying to sneak it into the next budget bill. You know, the one they have to pass before we figure out what’s inside. This is Twilight Zone material. It’s all coming together. The wind is picking up and I can feel droplets of water in the air. Time to board up the windows and head for the underground shelters. This won’t be pretty.

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Tags assigned to this article:
AB 32John VasconcellosLarry EbensteinProp. 38

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