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

Obama, GOP Deal Could Add to California Deficit




    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.