"Ed Huntress" wrote in message
...

"azotic" wrote in message
...
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.

What do "free markets" have to do with it, Tom? What are you doing, trying
to explain economics or making a fruit salad?

--
Ed Huntress


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.

To me it seems the markets had a lot to do with it in 2002.

How much tax revenue was lost when the the market created
the real estate bubble that imploded ?

Best Regards
Tom.