California scores staggering $75B budget surplus
- Thread starter ajacobson
- Start date
Lol, so California now evened out 2 of the past like 20 or 30 deficit years? That still makes them be underwater big time. The state teetered on the brink of collapse just a short while ago. Absurd, those politicians.
You win a prize for the most hypocritical post of the day. California announces a huge surplus (to the dismay of Republicans who hate CA) and all you can complain about is how shitty CA is for having had deficits in the past.
Congrats, you're a loser!
"As recently as a year ago, California’s top elected officials were staring into a budgetary abyss that made the Great Recession look like a pothole. Newsom’s office projected a budget deficit of up to $54 billion, or about a quarter of the entire state budget. Legislators prepared to cut state government to the bone.
“We were scared, all of us,” state Assemblyman Chad Mayes (I) told The Hill last month. “We all agreed, 'Hey, we’re going to take a hit because we’re heavily dependent on high-income earners.'”
But the stock market’s rebound, and its yearlong rally, have helped repair the gap. California is unusually reliant on receipts from capital gains tax, so a strong year in the market is good news for state government. Initial public offerings from companies like DoorDash and Airbnb helped, while sales tax revenues also came in in greater amounts than expected.
Newsom said in an address Monday that he would propose using much of the money to fund what he said would be the biggest economic recovery package in state history."
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I've said it before, I'll say it again - an ever-rising US stock market is now a matter of national security for the US government.
“We were scared, all of us,” state Assemblyman Chad Mayes (I) told The Hill last month. “We all agreed, 'Hey, we’re going to take a hit because we’re heavily dependent on high-income earners.'”
But the stock market’s rebound, and its yearlong rally, have helped repair the gap. California is unusually reliant on receipts from capital gains tax, so a strong year in the market is good news for state government. Initial public offerings from companies like DoorDash and Airbnb helped, while sales tax revenues also came in in greater amounts than expected.
Newsom said in an address Monday that he would propose using much of the money to fund what he said would be the biggest economic recovery package in state history."
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I've said it before, I'll say it again - an ever-rising US stock market is now a matter of national security for the US government.
That's a pretty fkg scary thought...
a) I said that without any political motivation or connotation
b) hypocritical means saying one thing and doing another. The choice of term does not make sense here in this context
c) why does it make one a loser when one points out facts. Look at the following time series, for example:
-25,-12,-46,-15,+2,-28,-31,-100,-125,+78
This is about how Cal's deficits looked like over the past years. And that makes you celebrate? We all know that the most recent surplus is an anomaly and that the leadership surely will find ways to waste all that money (in this case buy votes by funneling it to low income households). Should that not actually be cause for tears?
b) hypocritical means saying one thing and doing another. The choice of term does not make sense here in this context
c) why does it make one a loser when one points out facts. Look at the following time series, for example:
-25,-12,-46,-15,+2,-28,-31,-100,-125,+78
This is about how Cal's deficits looked like over the past years. And that makes you celebrate? We all know that the most recent surplus is an anomaly and that the leadership surely will find ways to waste all that money (in this case buy votes by funneling it to low income households). Should that not actually be cause for tears?
https://www.econlib.org/california-state-government-will-lose-big-from-capital-gains-tax-increase/
Since the 2020 election, there have been plenty of capital investment sales and liquidations in order to take advantage of the lower existing federal tax structure and in anticipation of a higher Biden administration tax structure.
The Biden tax proposals on capital gains on the Federal level will probably decrease California's tax receipts from capital gains. There is plenty of empirical evidence that higher capital gains tax rates forces investors to postpone realizations on those gains. And conversely, when an administration lowers capital gains tax rates - investors tend to realize those gains (and net tax receipts increase).
Since the 2020 election, there have been plenty of capital investment sales and liquidations in order to take advantage of the lower existing federal tax structure and in anticipation of a higher Biden administration tax structure.
The Biden tax proposals on capital gains on the Federal level will probably decrease California's tax receipts from capital gains. There is plenty of empirical evidence that higher capital gains tax rates forces investors to postpone realizations on those gains. And conversely, when an administration lowers capital gains tax rates - investors tend to realize those gains (and net tax receipts increase).
You are a legit idiot. A huge economic recovery saves CA from decades of shit policies and you look at that as if its some proof of CA policies. But, as the article clearly explains, they were temporarily saved by the huge recovery. And as the article also points out, they are about to take that temporary reprieve and blow that money, too. They are idiots. But not quite the idiot you are.