Re:California sales taxes collection drop 50.9%, income taxe...
by earl on Friday May 08, 2009 @06:33PM
(#600360)
To be clear, those are y/y per-month changes. Otherwise, this would be even more terrifying than it is.
That being said, the majority of general fund revenue comes from (in order), personal income tax (55%), retail/sales/use tax (27%), and corporation tax (11.1%), and other (6.1%). So a drop in income taxes of 43.6% is far more important than the change in sales tax of -50.9% -- if those rates are sustained, that implies we need to look for something to replace the (0.55*.436 = 23%) of our general fund revenue. Suck.
That being said, the majority of general fund revenue comes from (in order), personal income tax (55%), retail/sales/use tax (27%), and corporation tax (11.1%), and other (6.1%). So a drop in income taxes of 43.6% is far more important than the change in sales tax of -50.9% -- if those rates are sustained, that implies we need to look for something to replace the (0.55*.436 = 23%) of our general fund revenue. Suck.