...the budget Brown signed into law in June found “balance” only via some far-fetched assumptions....it also bet that capital-gains taxes from the Facebook IPO would generate $1.5 billion for the state treasury. Oops: Facebook stock’s down 40 percent. Now state officials hope booming iPhone 5 sales can fill the Zuckerberg gap (but those are slower than hoped, too).
Because the productive are not creating wealth faster than Governor Brown can spend it, he's asking the people of California to allow him to confiscate the difference via a hike in income taxes on the "rich" ($250K+) from approximately 10% to 13%. It will be on the ballot this November as "Proposition 30"; although maybe he should have just called it the "Anti-Greed Act"?
Ah, just like the old Soviet Union! California, like their fascist predecessors, is now using the power of the state to penalize companies and individuals for failing to meet unrealistic (and perhaps economically insane) government quotas.
If my Russian serves me: "Comrades Lumberjacks, keep the promise given to Comrade Stalin: overfullfill the plan!"
Failed to hit your government-imposed "goals" thsi quarter? Well, you're gonna pay. Literally.
Too bad, for them. And us. Would have been a "teachable moment" for America as a whole. Although, in these perilous times, a mere "shrug" - just pulling the right screw out at the precise place where the pressure is at its highest - might be enough to bring the whole entire system crashing down....