How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - AI Enthusiasm Boosting Income Tax Revenues, but for How Long?   Recent enthusiasm around Artificial Intelligence (AI) has pushed the stock market to record highs and boosted compensation for the state 's technology workers.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - AI Enthusiasm Boosting Income Tax Revenues, but for How Long?   Recent enthusiasm around Artificial Intelligence (AI) has pushed the stock market to record highs and boosted compensation for the state 's technology workers.
https://lao.ca.gov/LAOEconTax/article/Detail/852

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The measure would have the following major fiscal effects: Increased state costs that would likely be in the tens of millions of dollars annually to establish and operate a new regulatory commission overseeing certain public benefit AI com panies.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - For California, the dot ‑com era —when stocks rose and then fell precipitously in response to widespread adoption of the internet —offers the most salient example. The internet has proven to be a transformative technology and, yet, the stock market ’s initial reaction was clearly overly exuberant.
https://lao.ca.gov/Publications/Report/5091

Oversight of certain frontier artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - Background AI and AI Companies. AI refers broadly to technologies that enable computer systems to perform tasks that typically require human intelligence, such as generating content, identifying patterns, or mak ing predictions from data.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-034

Artificial intelligence and child safety. [Ballot]

Jan 27, 2026 - Proposal Establishes Child Safety Requirements for Certain AI Systems. The measure establishes new child safety requirements for providers of “covered AI systems, ” generally defined as consumer-facing, conversational AI systems (including companion-style chatbots), while excluding business-only and certain narrow-purpose AI tools.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-036

Artificial intelligence (AI) and child safety. [Ballot]

Dec 12, 2025 - Creates a Children ’s AI Safety Fund. The measure establishes the Children ’s AI Safety Fund to support state oversight and implementation activities. All monetary penalties collected by DOJ and registration fees paid by AI developers would be deposited into the fund.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-025

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - And most of this increase has come from skyrocketing share prices among a handful of firms associated with innovations in Artificial Intelligence (AI). These firms have invested heavily in building out data centers and on extraordinary pay packages for their key employees.
https://lao.ca.gov/Publications/Report/5104

Update: Tech Company Equity Pay Driving Withholding in 2024 [EconTax Blog]

Nov 20, 2024 - As the AI boom has supercharged California's tech landscape, including sending asset prices for these companies much higher, the market value of equity pay options (and thus the state income tax that must be withheld on those options) has grown commensurately. 
https://lao.ca.gov/LAOEconTax/article/Detail/815

Update: Tech Company Equity Pay Driving Withholding in 2024 [EconTax Blog]

Nov 20, 2024 - As the AI boom has supercharged California's tech landscape, including sending asset prices for these companies much higher, the market value of equity pay options (and thus the state income tax that must be withheld on those options) has grown commensurately. 
https://lao.ca.gov/LAOEconTax/Article/Detail/815