San Diego Housing Market News and Analysis
Tax The Rich: Says Brown....
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Submitted by flu on May 14, 2012 - 12:38pm
California wants to tax rich to solve budget woes
For the lazy...
The governor laid out his revised spending plan Monday. It would slash $8.3 billion from almost every part of the state's government. But it would increase funding for K-12 education if voters approve his proposal to hike income taxes on the rich and sales taxes on everyone.
"We can't balance this budget with cuts alone," he said. "The budget I'm proposing will boost funding for education, protect public safety and prevent an even deeper round of trigger cuts."
California's budget predicament shows that states have yet to heal from the Great Recession. While state tax revenues have begun to recover, several states continue to be faced with tough cuts, especially if their revenue projections prove to be overly rosy.
The revision comes two days after Brown took to YouTube to urge residents to support his November tax proposal, which he said would prevent "severe" damage to schools. Brown has been hawking a tax hike since he took office in January 2011, but Republican legislators blocked his efforts last year.
The proposal calls for raising income taxes on the rich -- those earning more than $250,000 -- by up to 3 percentage points for the next seven years. It would affect about 1% of filers.
Also, the measure would raise California's sales tax by a quarter of a point starting in January and lasting through 2016. That would bump up the average state sales tax rate to 8.4%.
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