Why Do Democrats Hate the Working Middle Class? Something is Really Wrong In the Budget Numbers
The Department of Finance, in a press release, just projected a record surplus, which was widely reported without question by press around the country. Last year, I said there were warning signs of a problem. Interestingly enough, if you get past the press releases, the Rosy Scenario reported in the press releases are false, and the problems “unreported” or “hidden” by the “record surplus” language may spell disaster in November. WARNING: the following contains a lot of boring numbers, but it is worth understanding.
First, let’s look at the numbers. The Department of Finance (DOF) says we are looking at a $97.5 billion surplus on a $301 billion budget. But there is a problem. If you review the May Revise (the report on which the budget is usually based, which includes all of the April tax revenues), general fund revenues are projected to be $30 billion less in the budget year (2022-23) than in the current year (2021-22). How do you get a $97.5 billion surplus on a $30 billion revenue drop?
DOF, again in its press releases, says the surplus comes from high income earners paying a lot of taxes.… Read More