Can California’s Next Governor Gain Victory over Revenue Volatility?

California gets about half of its income-tax revenue from the top one percent of earners, which makes for high revenue volatility during an economic downturn. Back in 2009, California governor Arnold Schwarzenegger set up the Commission on the 21st Century Economy to deal with this problem. The commission recommended cutting tax brackets down to two and replacing the corporation tax and state sales tax with a 4 percent tax on business activity, but the legislature failed to vote on the proposals.
As Dan Walters of CALmatters notes, after governor Jerry Brown took office for the second time and grasped the threat

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