To the editor: California's budget is dependent on the capital gains tax, described as a giant bet on the stock market. With the stock market reaching record highs this past year, we had a record high budget, including a $4-billion surplus. ("California officials eyeing stock market plunge, hope it won't last," Aug. 24)
However, due to our state's unhealthy reliance on residents' capital gains tax revenue, a volatile stock market can wreak havoc on the state budget.