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Taxifornia barely made budget in February, as personal income tax falls short

California barely made budget in February after two months of big deficits, but personal income tax collections fell short by another $137 million.

When Gov. Gavin Newsom was inaugurated in the morning of January 9, he proposed a record $144.2-billion spending plan for California’s 2019–2020 budget.  Having campaigned as a social justice warrior, Newsom trumpeted plans to spend another $5.2 billion for “Cradle-to-Career” education, $1 billion more for earned income tax credits for the poor, and $100 million for the caravans of Central Americans refugees supposedly fleeing violence.

But later in the day, the state controller revealed that California tax collection missed budget in December by $4.82 billion.  A month later, the controller disclosed an added $2.87 billion shortfall in January and a 2018–2019 fiscal year net $2.41 billion deficit.

February personal income tax collection missed by another $137 million, but the budget was bailed above plan by $152 million in sales and $102 million in corporate taxes.  But California is still under budget by $2.29 billion for the June fiscal year.

California gained the title “Taxifornia,” because it has America’s highest state personal income tax rate of 12.3 percent, plus 13.3 percent tax on incomes over $1 million. […]

Read the full story from American Thinker

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