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Stock Market Drop Means Bad News For California’s Finances

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posted on Dec, 27 2018 @ 10:00 AM
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www.cnbc.com...

So it appears California is going to have some problems due to the rich 1% being responsible for 50% of income taxes which also accounts for over 1/3 of the entire tax income of California.

164,000 out of 39.5 million people are responsible for 35% of the entire tax income. That is amazing and sad at the same time.



December’s ugly stock market is very bad news for California’s finances.

That’s because the state’s top 1 percent of personal income tax earners — roughly 164,000 tax returns — generate about half of the personal income taxes in California. A good chunk of the income from the wealthy comes from capital gains and stock options from companies in tech and other industries, meaning that even small changes in the financial markets can cause big swings either way in terms of the state’s collected revenues.

A forecast by the state estimates personal income tax collections in fiscal 2018-19 will account for nearly 70 percent of the state’s total general fund revenues and transfers. Sales taxes are expected to represent roughly 20 percent and corporate taxes another 8 percent, with the rest coming from other taxes.




posted on Dec, 27 2018 @ 10:04 AM
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a reply to: infolurker

"Paying their fair share".

Looks like they're paying the lions share.



posted on Dec, 27 2018 @ 10:05 AM
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California wastes a lot of money and pays their head officials way too much. They try to impress the rich with fancy stuff and it leads to very high costs of government. When twenty people use a park and it costs a million to build, that is wasted money.



posted on Dec, 27 2018 @ 10:06 AM
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Without tax money, how will they hand out all those needles to the drug addicts?????

Damn you, capitalism, damn you.

Quick, tell your california politicians we need more socialism.



posted on Dec, 27 2018 @ 10:14 AM
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originally posted by: projectvxn
a reply to: infolurker

"Paying their fair share".

Looks like they're paying the lions share.


part of the joy of living in ca



posted on Dec, 27 2018 @ 10:23 AM
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So...it's just been announced that Gov. Jerry Brown is spending millions of dollars of taxpayer funds to send up his own satellite to fight global warming.

Priorities matter.



posted on Dec, 27 2018 @ 10:33 AM
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originally posted by: infolurker

www.cnbc.com...

So it appears California is going to have some problems due to the rich 1% being responsible for 50% of income taxes which also accounts for over 1/3 of the entire tax income of California.



There's a really great solution to this problem. The rich 1% should pay higher wages so they don't have to pay 50% income taxes!



posted on Dec, 27 2018 @ 10:34 AM
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Too much nepotism in local government. Local government should be abolished. The state should run all local services.



posted on Dec, 27 2018 @ 10:40 AM
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a reply to: infolurker

But the stock market is doing MAGA... remember... less than 24hrs ago, it was being cheered and hail trump on ATS and most one sided conservative news outlets 😂

So California is really lucky because the economy and stock market is doing so well!


So all the snide sarcastic remarks are oxymoronic... because the stock market was great a couple of days ago 🤣



posted on Dec, 27 2018 @ 11:17 AM
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a reply to: odzeandennz

Do you even realize that a strong economy can cause the stock market to tank? Do you not think the Stock Market is rigged? This is why I've always been leery when the economy is doing well, because the Stock Market is rigged by Wall Street millionaires, rich, elite investors and traders who constantly manipulate the Market. Then, the Fed swoops in and raises interest rates when the economy is doing really well. How does the average Joe (like me) stay comfortable with their 401K or 403B investments in the Stock Market? The fact is, most of us don't! When the Stock market starts falling, average Joes get scared and pull back their investments in stocks. There has always been stock-market volatility. Guess what? Trump isn't directly responsible for that. MAGA 2020!


The strong economy stokes fears that inflation is picking up. • Fears about inflation drive worries the Federal Reserve could raise interest rates faster than indicated. • The worries about the Fed fuel a long-held view that rising rates kill bull markets, partly because companies tend to grow more slowly when money becomes more expensive to borrow. • That daisy chain of anxiety lead to a simple conclusion: Sell.

www.nytimes.com...


Ed Yardeni, a longtime Wall Street guru who isn’t one of the clowns of the bunch, said flat out last week that the market was being propped up. “These markets are all rigged, and I don’t say that critically. I just say that factually,” he asserted on CNBC.



America was built on capitalism and free and fair markets. Today’s markets aren’t fair. In fact, they are unfair because they are putting lots of money into the pockets of a small number of Americans.



The bigger problem is this: If stock prices are artificially inflated, nobody can tell what a company is really worth. And banks are going to be hesitant to lend money to companies with fuzzy valuations.

nypost.com...



posted on Dec, 27 2018 @ 01:19 PM
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originally posted by: odzeandennz
a reply to: infolurker

But the stock market is doing MAGA... remember... less than 24hrs ago, it was being cheered and hail trump on ATS and most one sided conservative news outlets 😂

So California is really lucky because the economy and stock market is doing so well!


So all the snide sarcastic remarks are oxymoronic... because the stock market was great a couple of days ago 🤣


Not by me. The Stock Market has been artificially inflated by 700 Billion in Stock Buybacks this year. I don't expect a comeback until a big correction.... but we shall see.



posted on Dec, 27 2018 @ 01:24 PM
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California is screwed because of it's irresponsible leadership. A declining stock market, coupled with the wave of new California Democrats taking office on January 1st, only hasten the state's demise.



posted on Dec, 27 2018 @ 01:29 PM
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a reply to: infolurker

CALpers is gunno go by by if the market drops belows 20k watch

weeew baby we are for a rough ride when those pension checks stop coming. the fundamentals are about to change



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