CA Takes In $5B More Than Expected in Taxes
But can the state resist spending it?
California was flooded with tax dollars in January, according to a new report, and the state received $5 billion more revenue this month than Gov. Jerry Brown had anticipated. …
The analyst's office floated three possible causes for the surge in tax revenue. The most positive theory is also the simplest—the economy has improved and there's more income to tax.
The others are less optimistic. It's possible that wealthy residents, fearful that federal budget negotiations would increase their taxes, decided to cash out investments early. If so, that means the state could see less tax revenue in the next fiscal year.