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Just as spending rises predictably, so does revenue along with GDP. Taxe rates haven't gone down, so all you need to do is grow spending at a reasonable rate. C
by NoPiece 14y ago
Just as spending rises predictably, so does revenue along with GDP. Taxe rates haven't gone down, so all you need to do is grow spending at a reasonable rate. California didn't grow spending reasonably or responsibly. As tax revenue spiked during the dot com and real estate boom, spending went up commensurately, and beyond.
- guelo 14y agoTax rates didn't go down but tax revenue dropped dramatically during the recession.
- NoPiece 14y agoThey didn't drop dramatically, they flattened, or reverted to the mean after a decade of excessive growth based on the real estate bubble. This graph is from budget summary: http://i.imgur.com/Zvjbw.jpg http://i.imgur.com/Zvjbw.jpg If there was one iota of spending restraint in the lead up to the recession, California wouldn't be in a crisis.