California's wealthy put Gavin Newsom's progressive plans at risk

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California's wealthy put Gavin Newsom's progressive plans at risk
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The Democratic governor's new proposed budget scales down on initiatives dealing with climate change and housing.

on Tuesday announced his state faces a projected budget deficit of $22.5 billion for the coming fiscal year after projecting a $98 billion surplus last year.

During his presentation to the press, Newsom displayed a chart on capital gains as a percentage of personal income. He said personal income tax withholding receipts contracted by 4.5 percent on average on a year-over-year basis from July to November while revenue from capital gains as a percentage of total tax revenue is expected to further decline in 2023.

"It's an EKG, and that sums up California's tax structure," Newsom said of the effect capital gains and personal income has on the state economy."It sums up the boom-bust."

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