‘Volatility’ in Capital Gains Casts Doubt on California Tax Plan
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California Governor Jerry Brown’s proposed sales- and income-tax increases are likely to raise $2 billion less than projected, largely because of “volatility” in taxes on capital gains, the state’s fiscal analyst said.
Brown’s five-year boost in income-tax rates and four-year increase in sales taxes would generate about $4.8 billion in the next fiscal year, less than the $6.9 billion Brown estimated in his budget last week, according to a report yesterday from the Legislative Analyst’s Office.