California may be parched and arid, thanks to a historic drought. Meanwhile, Sacramento is awash with money – about $6.7 billion more than government bean counters were counting on as recently as January.
It may seem easy to dismiss capital gains taxes as just a “rich person’s problem.” Popular wisdom holds the wealthiest among us generate essentially excess wealth largely through well-timed investment trades, making capital gains nothing more than icing on their income cakes.
Two of California’s historical ballot initiatives – one brought by government outsiders to limit government revenue, the other brought by government insiders to expand government revenue – face an uncertain future if changes to these laws appear on the 2016 ballot.
The “Left Coast” and “Taxifornia” are two common nicknames for the Golden State. And it isn’t surprising why. California hasn’t voted for a Republican presidential or U.S. Senate nominee since 1988 and hasn’t elected a Republican to a statewide office since 2006.