Calif. Voters Approve Brown’s Tax Hike Plan, Reject Munger’s Plan
Gov. Jerry Brown (D) has declared victory for a compromise tax hike initiative that he developed with supporters of the "Millionaires Tax," know as Proposition 30 on the ballot, Reuters reports (Christie, Reuters, 11/7).
Fifty-four percent of voters supported the measure, while 46% opposed it, according to figures released with 87% of precincts reporting (Yamamura, "Election 2012," Sacramento Bee, 11/7).
Prop. 30 Details
The compromise tax hike plan will:
- Increase the personal income tax by one percentage point for individuals who earn $250,000 annually or couples who earn $500,000 annually and by two percentage points for individuals who earn $300,000 annually or couples who earn $600,000 annually;
- Extend the income tax increases on wealthy residents from five to seven years; and
- Increase the sales tax by a quarter of a cent.
The sales tax hike will expire in four years (California Healthline, 10/26).
Rival Tax Plan Fails
Meanwhile, a rival tax hike plan -- called Proposition 38 on the ballot -- by civil rights attorney Molly Munger was defeated Tuesday.
The initiative aimed to raise $10 billion in revenue through income tax hikes on middle- and upper-class individuals, mostly to fund education (Rosenberg, San Jose Mercury News, 11/6).
With about 50% of precincts reporting, 73% of voters rejected the measure and 27% supported it (Reuters, 11/7).
Voters Reject Proposition 37
California voters also rejected Proposition 37, an initiative on the California ballot that would have required new labels for genetically engineered foods.
With 90% of precincts reporting, 53% of voters rejected the measure and 47% supported it (Hull/O'Brien, San Jose Mercury News, 11/7).
Voters Reject Proposition 32
Voters also rejected Proposition 32, an initiative that aimed to prohibit labor unions and corporations from using payroll deductions to generate funds to support political campaigns.
The measure also sought to prohibit unions and corporations from making candidate contributions.
With about 93% of precincts reporting, 56% of voters rejected the measure and 44% supported it (Mishak, "PolitiCal," Los Angeles Times, 11/7).
Voters Reject Proposition 31
In addition, voters rejected Proposition 31, a measure that would have established a two-year budget cycle (Buchanan, San Francisco Chronicle, 11/7). Prop. 31 also would have:
- Created new rules for offsetting new expenditures;
- Gave the governor the power to make budget cuts in fiscal emergencies; and
- Gave counties new authority to alter the way they deal with state statutes or regulations on state-funded programs (Lauer, California Healthline, 11/1).
With 98% of precincts reporting, 60% of voters rejected the measure and 40% supported it (San Francisco Chronicle, 11/7).
Proponents said Prop. 31 would improve California's health care system. However, some health care advocates worried that giving counties too much discretion could undermine state health care laws and programs (California Healthline, 11/1).
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