Brown Seeks Vote by Californians on Raising Income, Sales Taxes

Monday, 05 Dec 2011 10:56 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

California Gov. Jerry Brown began a drive to place temporary income- and sales-tax increases — to the tune of $700 billion — before voters on the state election ballot next year, as a way to deal with a looming budget deficit.

Brown will submit his proposal to the state Attorney General’s office today, the governor said. If it qualifies, voters in November 2012 would decide whether to raise levies on individuals making $250,000 a year or more, or on couples earning $500,000 or better. The measure also calls for a 6.9 percent boost in the state’s sales-tax rate to 7.75 percent.

“I am going directly to the voters because I don’t want to get bogged down in partisan gridlock as happened this year,” the governor said today in an open letter.

Brown, 73, has said he would push for the ballot measure after failing to win legislative approval in June to extend $11 billion of higher taxes and fees, which have since expired. State officials have said that a sluggish economic recovery is unlikely to produce $3.7 billion in revenue Brown built into the current budget. A shortfall of that size would trigger automatic mid-year spending cuts.

The ballot measure would increase income levies for individuals making $250,000 to $300,000 by 1 percentage point, to 10.3 percent. For those earning $300,000 to $500,000, the rate would jump to 10.8 percent, both from 9.3 percent now, according to the Franchise Tax Board. For single filers with income topping $500,000, the rate would climb to 11.3 percent.

California currently taxes income of more than $1 million at 10.3 percent, with the additional 1 percentage point earmarked for mental-health services, under a 2004 initiative.

The Attorney General’s Office must produce a summary and title for Brown’s measure before supporters can start gathering signatures needed to put it on the ballot.

The increases would raise an estimated $7 billion a year. Both would expire in 2017, according to the initiative. In crafting this year’s budget, which passed in June, lawmakers cut more than $12 billion in proposed spending to help balance the plan with projected revenue.

The state Legislative Analyst’s Office has said California may face a $13 billion deficit in fiscal 2013, which begins in July.


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Man Detained after Threats at LA Times Building

Saturday, 19 Apr 2014 22:03 PM

A man suspected of making threatening statements about a shooting and forcing the lockdown of the Los Angeles Times buil . . .

Body Found by Highway Is Missing Massachusetts Boy

Saturday, 19 Apr 2014 21:42 PM

The body of a small boy apparently cast off the side of a highway in Massachusetts has been confirmed as a missing 5-yea . . .

Scam Burns Miami-Dade Fire Department From Within

Saturday, 19 Apr 2014 21:33 PM

South Florida is no stranger to insurance fraud. But a recently exposed scam involving public workers is sure to leave t . . .

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