The California Democratic Party officially endorsed Gov. Jerry Brown's (D) compromise tax hike initiative, the Sacramento Bee's "Capitol Alert" reports (Van Oot, "Capitol Alert," Sacramento Bee, 7/29).
Details of Compromise Tax Hike Plan
The compromise tax hike plan -- developed by Brown and supporters of the "Millionaires Tax" would:
- 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 would expire in four years.
The tax would raise an estimated $9 billion over the next fiscal year (California Healthline, 6/26).
Last month, Brown signed the fiscal year 2012-2013 budget agreement, which includes revenue from the compromise tax hike plan (California Healthline, 7/10).
Details of Endorsement
The California Democratic Party's executive board endorsed the compromise tax hike plan -- labeled Proposition 30 on the November ballot -- at a weekend meeting in Anaheim.
The board voted to oppose a rival tax hike plan by civil rights attorney Molly Munger, labeled Proposition 38 ("Capitol Alert," Sacramento Bee, 7/29).
Munger's tax hike proposal, called "Our Children, Our Future," aims to raise income tax for all residents, with highest earners seeing the largest hike. Most of the revenue would support education programs (California Healthline, 6/21).
The executive board took no position on a third tax measure proposed by hedge fund manager Tom Steyer, labeled as Proposition 39.
It would raise about $1 billion annually by changing the state's corporate tax formula ("Capitol Alert," Sacramento Bee, 7/29).