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Yes, and it was disbursed as stimulus under the guise of a "Gasoline Tax Refund." Obvious to everyone that it was a terrible fiscal decision, but clearly the ad
by aauchter 3y ago
Yes, and it was disbursed as stimulus under the guise of a "Gasoline Tax Refund." Obvious to everyone that it was a terrible fiscal decision, but clearly the administration thought it was prudent politically.
- mikeyouse 3y agoThey didn’t have a choice - it was mandatory to return the surplus funds over a specific amount back to residents (SAL or Gann Limit) https://www.transformca.org/post/california-s-ginormous-budget-the-gann-limit-and-why-it-all-matters https://www.transformca.org/post/california-s-ginormous-budg...
- _hypx 3y agoBecause of how California taxation works, there are good reasons to have a 5 year rolling tax window and set budgets based on that. That would give us a much clearer picture of real budget surpluses and deficits.
- the_optimist 3y agoThis is not obvious. Why is this a terrible decision?
- garciasn 3y agoBecause it left the state in an untenable situation this year?
- similetimes 3y ago[dead]
- fshbbdssbbgdd 3y agoSince there is currently no output gap in the economy, any stimulus turns 1:1 into inflation. Government spending can still be beneficial if directed toward high-ROI investments, but a straight-up cash drop is just a waste.
- PortleyFool 3y agoISLM ; )