Monday, December 10, 2012

From Fruits and Huts to Taxes and Deficits

The latest monthly revenue for the State is out and it is not good.  Really not good.  If it weren't for Apple stock sales front running the cap gains increase it would be fiscal emergency sized not good.  
Here's the snapshot:

Things to notice.  
• Corporate taxes running 30% below estimates.  
• Personal income taxes on budget but 11% higher than last year.  
• Retail enough lower that the Prop 30 revenue is unlikely to meet goal.

10% of all sales tax revenue is gasoline.  Falling prices and declining consumption are going to be a permanent drag on that component.  Total employment is generally flat as well.  Corporations are not just fleeing the State with their mobile assets and employees but they are running down what assets they leave behind.  We are increasingly trying to extract more and more from a shrinking base.  

My guess is that we get the draconian cuts that Prop 30 was supposed to forestall.  The Republicans in the legislature should take the principled stand in the budget process and not participate and vote present. Next I will have a post discussing the 800 lb gorilla in the budget.  Local "support" is running way above projections.  


Cinco-X said...

Enough about:
the link between man and machine is about to get way more cyborg-like. “As replacement limb technology advances, people may choose to enhance their physical selves as they do with cosmetic surgery today. Future retinal eye implants could enable night vision, and neuro-enhancements could provide superior memory recall or speed of thought,” the Council writes. “Brain-machine interfaces could provide ‘superhuman’ abilities, enhancing strength and speed, as well as providing functions not previously available.”

And if the machines can’t be embedded into the person, the person may embed himself in the robot. “Augmented reality systems can provide enhanced experiences of real-world situations. Combined with advances in robotics, avatars could provide feedback in the form of sensors providing touch and smell as well as aural and visual information to the operator,” the report adds.

sm_landlord said...

Here it comes:,0,6129572,full.story

"Long-treasured mortgage interest deduction may face changes"
"'Fiscal cliff' debate has put home mortgage interest deduction on the table. Critics contend it benefits the wealthy much more than the middle class."

It's being cast in class war rhetoric now...

Cinco-X said...
No. 1: Increase in Capital-Gains Tax
No. 2: Expiration of Mortgage Interest Deduction
No. 3: Expiration of Mortgage Default Forgiveness Act
No. 4: Bailout of Federal Housing Administration

miss margie said...

Izz just glad I finally figured it out. Good to see each of you.

w said...

Ventura County median family income: $76,728

Ventura County median price owner occupied home: $515,900

The median family is the very definition of the demographic looking to move up into home ownership. They may be able to get into an old run down condo.

Homeownership is the very definition of the "wealthy" in CA. Don't expect any pity from the mob.

Of course, I wonder how much good eliminating the mortgage interest deduction would really do for the government since most everyone must be in a 3.75% loan or thereabouts by now. Hasn't the refi opportunity already greatly reduced the effect of the deduction on lost "revenue"

Cinco-X said...

miss margie said... Izz just glad I finally figured it out. Good to see each of you.

Good golly miss that who I think it is?

Rob Dawg said...

I'm pretty sure it is the Sultana of Sawgrass herself.

Rob Dawg said...

Did anyone laugh at the clever post title?

w said...

Actually, I should not admit this, the title kind of went over my head.