Prop Zero
The Starting Point for Commentary and Coverage of California Politics

Obama, GOP Deal Could Add to California Deficit

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The controversial tax and stimulus deal between President Obama and Congressional Republicans has one big potential loser: California state government.

Changes to the estate tax, sought by Republicans in the negotiations, would cost California billions (the $2.7 billion figure being used by some media organization is probably too high, for accounting reasons that are too complicated to go into here). Gov-elect Jerry Brown cited the changes in raising his estimate of the state's 18-month budget deficit to $28 billion from $25 billion.

More details on how this estate tax provision would work -- and how it would hurt California -- are here.

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