California’s Revenue Windfall Masks a Narrow and Mobile Tax Base
In a Hoover Institution California update, Bill Whalen and Lee Ohanian argue that the state’s newly balanced budget reflects another capital-gains windfall rather than a sounder fiscal model. They say California remains dependent on a narrow group of high-income, mobile taxpayers, with AI and possible IPOs offering more revenue upside while reinforcing the same volatility. The discussion extends that critique into state and Los Angeles politics, where they see unsettled Democratic fields and Spencer Pratt’s mayoral bid as symptoms of frustration with incumbent governance.
Hoover Institution·May 22, 2026·21 min read
