Fluctuating California Revenue
The main problem with the California tax structure is the volatility - the income and capital gains of the rich swing wildly from year to year. Education makes up half the budget. Schools used to get most of their revenue from relatively stable property taxes. But after Proposition 13, schools get most of their funds from the state, which depends on highly variable income, capital gains (stock) and sales taxes. Thus, the amount of revenue varies dramatically with the economy. Reasonable efforts to modify Proposition 13 to exclude corporate landowners and high income homeowners from its limits have gone nowhere.
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