But California has a $38 billion reserve, believed to be the largest of any state in U.S. history,
By Amanda Albright and Eliyahu Kamisherfor years had an enviable problem. His state was awash in cash.
The differing fortunes are highlighting the growing divisions between the largest Democrat and Republican-led states at a time when they’re competing for businesses and people to relocate, and their leaders are often sniping at each other over policies from immigration to taxation.
California’s personal income tax collections are its largest revenue source and about half comes from the top 1% of earners. That leaves the budget especially susceptible to financial shocks impacting this small subset of taxpayers. Meanwhile, Florida and Texas rely on taxes on sales, which have held up well as Americans keep spending, to the surprise of economists. Those levies have also been bolstered by inflation.
Some of the revenue declines aren’t a surprise because lawmakers have been on a tax-cutting spree. Half of US states cut personal or corporate income tax rates, and in many cases both, over the course of 2021 through 2023, according to the Center on Budget and Policy Priorities.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
How one author uncovered the fact that California was — and remains — a slave stateJean Pfaelzer discusses recasting history in 'California, a Slave State,' which tracks the record of racism and forced labor that drove the state's 'startup' culture.
Leer más »
California's reparations proposal moves to Newsom, state lawmakersAfter two years of deliberations, California’s Reparations Task Force on Thursday is sending its final report and recommendations to the state Capitol, where Gov. Gavin Newsom and lawmakers will ultimately decide how the state should atone for slavery
Leer más »
Starbird CEO talks trends in chicken sandwiches, salads, wings. Has spicy run its course?Q&A with Aaron Noveshen, whose restaurant chain is expanding to Southern California
Leer más »
4th of July: Here's where you can watch fireworks across SoCalHere's where you can watch fireworks in Southern California on the 4th of July.
Leer más »
Amtrak train partially derails after crashing into unoccupied water truck in Southern CaliforniaAn Amtrak train has partially derailed after it crashed into an unoccupied water truck on the tracks in California.
Leer más »
Amtrak train partially derails after crashing into unoccupied water truck in Southern CaliforniaAn Amtrak train has partially derailed after it crashed into an unoccupied water truck on the tracks in California.
Leer más »