Why Has Income Tax Withholding Lagged, Despite Job Growth? [EconTax Blog]

Nov 16, 2022 - The drop-off in IPO activity likely has also contributed to the relatively weak withholding figures seen to-date. While the typical share of withholding collections on bonuses and stock options is unknown, these types of incomes likely contributed to strong  tax withholding growth in 2021.
https://lao.ca.gov/LAOEconTax/Article/Detail/759

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - We have attributed some of the weaker-than-expected personal income withholding tax collections so far to a steep 84  percent decline in initial public offering (IPO) activity in 2022. Given that many IPOs in recent years have been among technology-related firms, the ongoing slowdown in that sector combined with more restrictive access to credit going forward is cautionary.
https://lao.ca.gov/Publications/Report/4762