California solvency threatened by Silicon Valley stock crash

The California Legislative Analyst Office warned that a crash in Silicon Valley stock could threaten state solvency with $12 billion in annual capital gains tax losses. The nonpartisan Legislative Analyst's Office (LAO) has provided the California Legislature with fiscal analyses and budget advice for 75 years to ensure the "executive branch is implementing legislative policy in a cost efficient and effective manner." According to the LAO, California personal income tax (PIT) collections are the "single largest source of General Fund revenue."  Key to those collections are capital gains taxes associated with Silicon Valley stock gains.  With the tech stock–saturated NASDAQ Index up 371.08 percent since 2009, California's annual capital gains tax collection skyrocketed by 800 percent from about $2.1 billion in 2010 to $16 billion in 2018.    With California's total budget...(Read Full Post)
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