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Jerry Brown
The reason for California's tax volatility: We soak the rich
The reason for California's tax volatility: We soak the rich

The numbers are in, and they're eye-catching: Gov. Jerry Brown's "soak the rich" tax increase really did drench them. And it made California's harmful tax volatility that the governor regularly rails about even worse. Tax volatility — the extreme surging and plummeting of income tax revenue — is the scourge that inflicted horrendous budget deficits on the state during the recession. Brown is trying to treat the symptom of volatility by hoarding revenue spikes in a so-called rainy-day reserve. Then it could be tapped in hard times. What California should be doing is curing the disease by reforming the tax system, stabilizing it and ridding us of...

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