June 11, 2012 - Los Angeles Times / California Politics

Budget culprit is California tax code, ratings agency says*

While Gov. Jerry Brown and top Democratic lawmakers haggle over spending cuts this week, Standard & Poor's said Monday that they're missing the core problem leading to California's budget crisis.* The root of the budget morass, the ratings agency said, is the state's tax code. Tax revenue has grown more slowly and become increasingly unreliable, thanks in part to the state's heavy reliance on taxing the wealthy. Standard & Poor's estimated that income taxes on the richest 1% gave the state 11% ... Go to story