Taxes

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Spending Watch

An Irresponsible FY2025-26 Budget All but Ensures Future Fiscal Crises

An Irresponsible FY2025-26 Budget All but Ensures Future Fiscal Crises Wayne Winegarden July 2025 Another fiscal year, another lost opportunity. In a June 2025 Spending Watch analysis, I lamented that Newsom was relying on gimmicks to close the current $12 billion budget deficit. The final budget the governor and legislative ...
Blog

Slowing Consumption Poses an Additional Fiscal Threat to California

The California New Car Dealers Associationnotes that total new vehicle registrations in the state stagnated in 2024 and are expected to decline slightly in 2025. The California Chamber of Commerce reports that tourism, which generated over $12 billion in tax revenue from both international and domestic visitors in 2024, is ...
Blog

Spending Watch

Budget Gimmicks Will Not Solve The State’s Fiscal Crisis

Budget Gimmicks Will Not Solve The State’s Fiscal Crisis Wayne Winegarden June 2025 It’s budget crunch time for Gov. Newsom and legislative leaders. The immediate problem is closing the estimated $12 billion budget shortfall for the FY2025-26 budget. Despite this serious fiscal challenge, the Governor’s budget proposal demonstrates an unseriousness ...
Blog

Spending Watch

Covering Undocumented Immigrants Will Worsen The State’s Fiscal Crisis

Covering Undocumented Immigrants Will Worsen The State’s Fiscal Crisis Wayne Winegarden May 2025 A previous Spending Watch analysis estimated the fiscal and economic impact of funding Medi-Cal benefits to undocumented immigrants. The analysis estimated that the expansion will require an additional $11.6 billion in expenditures, which will impose large economic ...
Blog

Spending Watch

AB 4: A Bad Idea That Costs Too Much

AB 4: A Bad Idea That Costs Too Much Wayne Winegarden and Nikhil Agarwal May 2025 As we noted in an earlier Spending Watch piece, growing economic volatility will likely cause revenue growth to be much weaker than expected for the upcoming FY2025-26 budget. It is, consequently, fiscally irresponsible for ...
Blog

Newsom’s Diaper Plan Stinks

Why a new program when the old one is working ok? The state argues that there are gaps in the existing program, which targets low-income parents. Instead of simply filling the gaps, the state wants to impose some elaborate scheme that is akin to killing a gnat with a shotgun. ...
California

What Is Going On In Los Angeles? 

Another question comes to mind: Could Los Angeles be the next Detroit? At times, is seems it’s in a race with San Francisco to see which will be the first to reach a Motor City-like nadir. Due to its “serious financial headwinds,” the city is going to have to make cuts, ...
Blog

Gavin Newsom claims California taxes aren’t high. Here is why he’s wrong

Gavin Newsom claims California taxes aren’t high. Here is why he’s wrong Originally published in Sacramento Bee by Matt Fleming READ MORE Gov. Gavin Newsom often claims California is not a high-tax state. “So, this notion of even being a high tax state is B.S.,” Newsom podcasted in March. “Sixteen ...
Blog

Spending Watch

The May Revision Should Assume A Weaker Fiscal Position for FY2025-26

The May Revision Should Assume A Weaker Fiscal Position for FY2025-26 Wayne Winegarden April 2025 The recently enacted tariffs are significant tax increases on consumption and production, as I discussed in a February 2025 PRI Issue Brief. These tariffs will increase costs for consumers and reduce profits for businesses both ...
Blog

Your Mileage May Vary on New Tax Proposal

Your Mileage May Vary on New Tax Proposal Can our Legislature be trusted to replace gas taxes with mileage fees? By Steven Greenhut | April 9, 2025 In a normal state run by politicians who weren’t constantly trying to hose taxpayers to fund an ever-expanding list of dubious programs, it ...
Blog

Spending Watch

An Irresponsible FY2025-26 Budget All but Ensures Future Fiscal Crises

An Irresponsible FY2025-26 Budget All but Ensures Future Fiscal Crises Wayne Winegarden July 2025 Another fiscal year, another lost opportunity. In a June 2025 Spending Watch analysis, I lamented that Newsom was relying on gimmicks to close the current $12 billion budget deficit. The final budget the governor and legislative ...
Blog

Slowing Consumption Poses an Additional Fiscal Threat to California

The California New Car Dealers Associationnotes that total new vehicle registrations in the state stagnated in 2024 and are expected to decline slightly in 2025. The California Chamber of Commerce reports that tourism, which generated over $12 billion in tax revenue from both international and domestic visitors in 2024, is ...
Blog

Spending Watch

Budget Gimmicks Will Not Solve The State’s Fiscal Crisis

Budget Gimmicks Will Not Solve The State’s Fiscal Crisis Wayne Winegarden June 2025 It’s budget crunch time for Gov. Newsom and legislative leaders. The immediate problem is closing the estimated $12 billion budget shortfall for the FY2025-26 budget. Despite this serious fiscal challenge, the Governor’s budget proposal demonstrates an unseriousness ...
Blog

Spending Watch

Covering Undocumented Immigrants Will Worsen The State’s Fiscal Crisis

Covering Undocumented Immigrants Will Worsen The State’s Fiscal Crisis Wayne Winegarden May 2025 A previous Spending Watch analysis estimated the fiscal and economic impact of funding Medi-Cal benefits to undocumented immigrants. The analysis estimated that the expansion will require an additional $11.6 billion in expenditures, which will impose large economic ...
Blog

Spending Watch

AB 4: A Bad Idea That Costs Too Much

AB 4: A Bad Idea That Costs Too Much Wayne Winegarden and Nikhil Agarwal May 2025 As we noted in an earlier Spending Watch piece, growing economic volatility will likely cause revenue growth to be much weaker than expected for the upcoming FY2025-26 budget. It is, consequently, fiscally irresponsible for ...
Blog

Newsom’s Diaper Plan Stinks

Why a new program when the old one is working ok? The state argues that there are gaps in the existing program, which targets low-income parents. Instead of simply filling the gaps, the state wants to impose some elaborate scheme that is akin to killing a gnat with a shotgun. ...
California

What Is Going On In Los Angeles? 

Another question comes to mind: Could Los Angeles be the next Detroit? At times, is seems it’s in a race with San Francisco to see which will be the first to reach a Motor City-like nadir. Due to its “serious financial headwinds,” the city is going to have to make cuts, ...
Blog

Gavin Newsom claims California taxes aren’t high. Here is why he’s wrong

Gavin Newsom claims California taxes aren’t high. Here is why he’s wrong Originally published in Sacramento Bee by Matt Fleming READ MORE Gov. Gavin Newsom often claims California is not a high-tax state. “So, this notion of even being a high tax state is B.S.,” Newsom podcasted in March. “Sixteen ...
Blog

Spending Watch

The May Revision Should Assume A Weaker Fiscal Position for FY2025-26

The May Revision Should Assume A Weaker Fiscal Position for FY2025-26 Wayne Winegarden April 2025 The recently enacted tariffs are significant tax increases on consumption and production, as I discussed in a February 2025 PRI Issue Brief. These tariffs will increase costs for consumers and reduce profits for businesses both ...
Blog

Your Mileage May Vary on New Tax Proposal

Your Mileage May Vary on New Tax Proposal Can our Legislature be trusted to replace gas taxes with mileage fees? By Steven Greenhut | April 9, 2025 In a normal state run by politicians who weren’t constantly trying to hose taxpayers to fund an ever-expanding list of dubious programs, it ...
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