IIRC part of the issue is that California heavily taxes capital gains and in general has very progressive tax, so they can be wildly wrong about their forecast based on what is happening in the markets.
And the reason they do this is because of prop 13. In particular, California's per capita budget isn't any higher than other blue states.
I don't think its a good source of revenue for many reasons. But until it becomes politically tenable to remove prop 13, I'm not sure if there's a better solution.
I don't think its a good source of revenue for many reasons. But until it becomes politically tenable to remove prop 13, I'm not sure if there's a better solution.