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California Tax Revenue Surges $5 Billion Above Estimates

California is on track to collect $5 billion more in tax revenue this month than estimated in Governor Jerry Brown’s budget, and the state’s fiscal analyst’s office said it can’t say why, yet.

High-income earners may have cashed out investments early in anticipation that federal income taxes would rise as part of a congressional deal over avoiding automatic tax increases, the state’s nonpartisan Legislative Analyst’s Office said yesterday in a report. U.S. levies on capital gains rose to 20 percent from 15 percent under this month’s agreement in Washington.