Tags: taxes | pensions | la | council

LA Council Considers Tax Increases, Pension Reform

Wednesday, 22 Aug 2012 02:13 PM

By Alec Weisman

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Los Angeles City Council drew fire from business owners and unions Tuesday after pushing for tax increases to be placed on a March ballot next year and calling for a raise in the retirement age for new employees.
 
According to the Los Angeles Times, council members voted 12-to-1 to explore the proposals in a desperate attempt to offset a budget deficit that could top more than a quarter of a billion dollars next year.
 
Councilman Paul Krekorian, chairman of the Budget and Finance Committee, said that without an increase in revenue the city would be required to make cuts to its police and fire departments.
 
The proposals include doubling a city tax rate on property sales, raising the parking occupancy tax from 10 to 15 percent, and raising the retirement age for new city employees to 67. Pensions would also be capped at 75 percent of an employee's salary.
 
City Administrative Officer Miguel Santana said the pension reform proposal would save the city $3 billion over 30 years.
 
Union leaders threatened political repercussions if the council proceeds with the pension reforms.
 
James Johnson, a representative for the local Service Employees International Union vowed to fight the proposal, saying, “If [the city] wants a war we did not start, let's get it on.”
 
Business groups also slammed the potential tax increases over concerns that it would drive companies out of the city and further depress the real estate market.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved