California Taxman Rakes In Billions More Than Expected

SACRAMENTO (KCBS) – Income tax revenue has exceeded state projections by $2 billion, and California’s deficit may shrink before Governor Jerry Brown submits his revised budget, state officials said.

Despite a $650 million shortfall in corporate tax payments, California has collected about $3 billion more in personal income tax this fiscal year than expected, said economist Justin Garosi at the non-partisan Legislative Analyst’s Office.

“It’s going to be slightly easier to balance the budget than we thought it was,” he said.

KCBS’ Doug Sovern Reports:

Employers are withholding more in payroll taxes and estimated tax payments for individuals have been higher for the last several months, a trend Garosi said he expects to continue for some time.

“That kind of implies the economy has been stronger than we initially thought it would be,” he said.

Garosi said the deficit will probably be about $13 billion instead of $15 billion when Brown presents the revised California budget on May 16.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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