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California Revenue Picture Brightens, But Debate Goes On

1 min readBy: Joseph Bishop-Henchman

From the Los Angeles Times:

State officials are reporting an unexpected $2-billion surge in tax receipts that will help lawmakers close the remaining $15-billion budget deficit, and the Capitol is humming with hope that more is coming.[…]

Some Republicans are already pointing to the extra revenue as one more reason why Brown should scrap his effort to hike taxes. But the governor remains insistent that the most sensible way to stabilize state finances is by balancing spending reductions and taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. increases.

The revenue uptick, he warns, could be fleeting.

Brown has proposed eliminating redevelopment agencies and a job creation tax credit for certain neighborhoods, and extending sales and income tax increases set to expire.

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