New York, New Jersey, Connecticut and Illinois-states that are the most
heavily reliant on the taxes of the wealthy-are now among those with the
biggest budget holes.

As they've grown, the incomes of the wealthy have become more unstable.
Between 2007 and 2008, the incomes of the top-earning 1% fell 16%, compared
to a decline of 4% for U.S. earners as a whole, according to the IRS.
Because today's highest salaries are usually linked to financial
markets-through stock-based pay or investments-they are more prone to sudden
shocks.

After the dot-com bust, the state's revenues from capital gains fell by more
than two-thirds, to $5 billion in 2003 from $17 billion in 2001, while
personal-income taxes fell 15% over the same period. The recession created a
mirror image of the boom, with the wealthy leading the crash and dragging
tax revenues down with them. By 2002, California had a budget shortfall of
more than $20 billion.

http://online.wsj.com/article/SB1000...592684626.html

Perhaps the idiots in those states should stop depending on projected
earnings
before they spend thier citizens income in advance. Wishfull thinking will
not
fix thier budget busting spending spree. Free markets are a cruel misstress.

Best Regards
Tom.