Thursday, November 26, 2015

California Eyeing Extending Temporary Tax Rate Increases, Maybe Raising Them -- November 26, 2015

This article provides a bit of background to California's Proposition 30 and where things are headed. These are the three 30-second soundbites that give one cause for pause, especially when reading about countries like Greece and, now, Portugal:
  • California's state budget is in great shape, perhaps better than ever (at least in recent history)
  • the "soak-the-rich tax" (Proposition 30) raised state top income tax bracket from 10.3% to 13.3%
  • the "soak-the rich tax" expires at the end of 2018
It is likely that the "temporary" tax will be extended for 12 years (2030).

Others would like a "permanent" tax and at higher rates.

GDP Now 4Q15 Forecast Updated For November 25, 2015: 1.8%
Dynamic link:
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2015 is 1.8 percent on November 25, down from 2.3 percent on November 18. The forecast for the fourth-quarter rate of real consumer spending declined from 3.1 percent to 2.2 percent after this morning's personal income and outlays release from the U.S. Bureau of Economic Analysis.

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