Arthur Laffer for the Nobel prize?

California’s tax collections grew at around half of what the state projected for 2010—indicating that the state’s fiscal situation may be even more dire than previously understood. California’s tax collections grew 3.79 percent last year, according to data released by the US Census Bureau. At the start of 2010,California was projecting revenue growth of 6.5 percent. ... two years of tax hikes have produced far less impressive results than state officials expected. The increased income, sales and car taxes were supposed to be temporary measures to keep California’s state government fiscally healthy until the local economy recovered and the state’s budget deficit could be addressed. The underperformance of the tax increases, however, has thrown a monkey-wrench into the plans.--John Carney

Chart link here.