Talking about California’s Deficit Jumps To $28 Billion As Tax Deal Rips Away Vital Income

 

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California’s Deficit Jumps To $28 Billion As Tax Deal Rips Away Vital Income

California’s budget gap has been revised upward again to $28.1 billion over the next 18 months.

Remember just days ago Schwarzenegger declared a fiscal emergency to deal with a $26 billion gap. Governor-elect Jerry Brown announced the new estimate last night.

The reason for the jump is Obama’s tax deal, specifically the establishment of a 35 percent estate tax — the lowest since 1931 — plus exemptions. California will lose $2.7 billion in this arrangement.

And that’s not even the biggest black eye in the tax deal. The failure to extend Build America Bonds will end what was effectively a stimulus for the Golden State and drive up the cost of issuing new debt.

See 16 reasons why California is the next Greece>

Read more: http://www.businessinsider.com/california-28-billion-estate-tax-2010-12#ixzz17ogUTWsf

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