667,000 people will lose their jobs in California by 2040 if Congress doesn’t act on an executive order on Tuesday, according to a new report by the Center for American Progress.
The nonpartisan think tank estimated that 4.7 million workers would lose their job if Congress does not act on the executive order.
The report said that the state’s economic growth will suffer from the cut in income tax revenue and it could lead to a recession.
The state’s income tax is estimated to be at about 28 percent of its total tax base.
The report said the revenue loss could cost California about $500 billion by 2027.
California is one of the most liberal states in the nation.
It was one of just three states that did not adopt a carbon tax in the last legislative session, but Governor Jerry Brown has proposed a cap-and-trade system to control greenhouse gases.
The state has not been hit with a recession since 2009, but it did suffer an economic recession in 2013 that hit the state hard.
It has been in the red in recent years.
The economy is expected to grow by about 2.8 percent this year, compared to an average of 1.8% for California, according the governor’s office.