California revenue soars, even as tax-cutting states feel the pinch

[eridani]

http://www.dailykos.com/story/2015/01/08/1356177/-California-revenue-soars-even-as-tax-cutting-states-feel-the-pinch

Republican-led states like Kansas, Wisconsin and Arizona are suffering mightily because of their addiction to tax cuts (which, it turns out, are actually not paying for themselves at all). The flip side of that coin? The latest news from California, which is getting revenues that are much higher than expected:

California income and corporation tax collections surged in December, pushing estimated tax revenue since July to about $3.6 billion above what lawmakers projected when they approved the current budget, according to preliminary totals compiled by the nonpartisan Legislative Analyst’s Office.

Preliminary income tax totals in December came in about $1.5 billion above what the budget projected for the month. Net corporation tax collections topped budget estimates by $500 million, according to the LAO. That total – for just one month – is almost as much as the $2.5 billion that the LAO recently projected state revenue would exceed budget estimates for all of 2014-2015.

Remember how Republicans used to mock California as a failed state? Greece on the Pacific? Well, a few years ago, voters kicked Republicans out of power and changed the absurd supermajority budget requirements that had given minority conservatives veto power over state government. The result? With voter approval, the state raised taxes on the highest income earners to fund education. It started to reinvest in water and transportation infrastructure and rebuild the social safety net. It completed the implementation of a robust cap-and-trade program to restrict carbon emissions and fund sustainability projects. And the result? A rapidly growing economy and surging tax revenue.

The results are in: one way of governing works. The other doesn't.

[Fearless]

1. Now roll back the idiotic cuts made in the state with that extra money.

[JDPriestly]

2. California needs to retire a lot of debt amassed under the Republicans with its extra revenue.

Once the debt has been paid, then we can roll back the cuts. It's tough, but I think Brown is right to get us out of at least some or most of our debt before spending the tax revenue on other things. And I am a strong advocate for social programs. But they can't be funded on huge debts.

[rpannier]

4. Agreed. Once the house is in order then we can talk about it

My guess is, there's a fairly sizable number of people who voted for the tax hikes to get the state solvent again.
Putting money into expanding programs would likely be a huge turnoff.
It could bring back the 'You can't trust government' mantra
Get everything together, then look at expanding. Get the public behind the idea

[Fearless]

5. Meanwhile schools suffer.

Sorry that they're not politically feasible.

[rpannier]

6. If the state announced they're going to expand spending beyond what

they said the tax increases were for they'd likely never get them passed again
Enough of the state might conclude that Reagan was right, you can't trust to government to do what they say

[Fearless]

7. That which is easy and that which is right need not coincide.

[rpannier]

8. True

But the long term consequences for schools and other social programs in the state would be dire

A good microcosm in California is the City of Walnut Creek. There is an area of the city Rossmoor, where only retirees live. They killed almost every education bond the city put out when I lived there in the 70's. It infuriated my mother. They were able to use their votes and get just enough 'fiscal conservatives' to join them.

In 2012, Illinois voters voted down almost every local school bond measure in the state because they were sure the money wouldn't be spent as billed.

It's unfortunate. But when you say doing right, right for who? If you don't spend the money as advertised in the proposition the public turns on you and no spending bill that includes tax increases will ever pass

You can be dismissive of it and call it easy, but it's reality

[Fearless]

9. Are you saying that the students of that community didn't suffer from a lack of funding?

Because I guarantee those in California are STILL suffering from the cuts made due to austerity. It is the responsibility of society to ensure that children receive a good education. Legally speaking it is required that students receive fair and adequate educations. They are not currently. Education should not be a political tool to score points with. That's what's wrong with our system currently. We weigh policy decisions against political outcome versus against what is ethically and even legally required.

And that's just education. It's equally true about a host of other issues impacted by Republican policy.

[KamaAina]

10. As do people with disabilities.

We're even less politically feasible.

[vanlassie]

3. Jerry Brown is a honey badger.

[yortsed snacilbuper]

11. Money is like manure,

if you spread it around it makes things grow!