LogFAQs > #965030622

Questionmarktarius posted...

So, the rough equivalent of someone who doesn't quite understand that Amazon doesn't take the money out of his account immediately, and ends up spending it twice.

Basically. It also basically hinges on the country not going into a recession, since the last time this sort of taxation approach was used according to the article was right before the dot com bubble burst and California ended up in a decade of deficit because of it:

The new budget, a revision to the plan Newsom offered in January, points to the outsized role that taxes paid on capital gains have on the states finances. Those dollars now make up a higher percentage of personal income taxes collected than at any point since 1999 which Newsom pointed out occurred just before the collapse of the states dot-com industry, an implosion that helped trigger massive state budget deficits for much of the decade that followed.

For those that are concerned about that, they are right to be concerned about that. We are deeply mindful of that, Newsom said in offering what he insisted is a cautious plan focused on short-term spending proposals.