The hidden risk of increasing taxes on millionaires
A proposed ballot initiative to increase millionaires' income taxes by 3 to 5 percent would raise more money but could make California even more susceptible to the seesawing booms and busts in revenue that have recently bedeviled California budgets.
Most people earn roughly the same pay, year after year. But millionaires consistently see their incomes shift dramatically from one year to the next, mostly due to fluctuations in the stock market.
This arcane fact takes on importance when looking at the possible impact the proposed tax increase on millionaires...
