Dan Walters: California’s tax surge could be dangerous

Capitol politicians have a sorry record in handling revenue windfalls, both real and imaginary.

In 2000, the state saw a one-time, $12 billion spike in revenue, thanks largely to a selling frenzy by holders of stock and stock options as a high-tech bubble burst.

Everyone knew that it was a one-time windfall, but then-Gov. Gray Davis and legislators of both parties committed two-thirds of it to permanent spending and tax cuts, leading to huge budget deficits that fueled the recall of Davis.

Read more here: http://www.sacbee.com/2013/02/05/5165780/dan-walters-californias-tax-surge.html#mi_rss=Dan%20Walters#storylink=cpy

via Dan Walters: California’s tax surge could be dangerous.

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