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Despite reservations, Prop 123 needed

As the Prop 123 election draws to a close and sentiment around it is more polarized, we need to underscore the importance of its passage. While admittedly imperfect, it does provide a way to get beyond the long-standing school inflation lawsuit.

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Tax exemption for digital goods will leave 9-figure budget hole (access required)

But this week, the Legislature proposes to take away at least another $183 million of tax revenue per year without any potential for future economic benefit. Unlike other tax reductions approved by the Legislature in recent years, eliminating the transaction privilege tax, or TPT, on digital goods doesn’t help the state attract one new job or encourage one business to relocate.