On Thursday, the California Nurses Association endorsed Gov. Jerry Brown's (D) compromise tax hike initiative and provided $1 million to a campaign to promote the measure, the Sacramento Bee's "Capitol Alert" reports (Siders, "Capitol Alert," Sacramento Bee, 8/2).
Details of Compromise Tax Hike Plan
The compromise tax hike plan -- listed as Proposition 30 on the November ballot -- was developed by Brown and supporters of the "Millionaires Tax."
The initiative 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.
In June, Brown signed the fiscal year 2012-2013 budget agreement, which includes revenue from the compromise tax hike plan.
Supporters of the initiative donated $6.3 million to its campaign during the first half of the year, according to campaign officials.
The campaign had $5 million in cash on hand at the end of June, the officials said (California Healthline, 8/1).
Comments on CNA Donation
Brown said that the donation is "a generous contribution and one sorely needed to present the choice to the people of California."
He added, "I feel better today than I did yesterday" about the prospects of the compromise tax hike plan.
Malinda Markowitz, San Jose nurse and CNA co-president, said that the initiative is a "big first step" toward protecting health care, education and other state services.
RoseAnn DeMoro, executive director of the union, said that the nurses "stand solidly behind" the governor and will work to promote the compromise tax hike plan "in every community" (Richman, Contra Costa Times, 8/3).
Munger Gives $5M More To Prop. 38 Campaign
On Wednesday, officials with a campaign supporting a rival tax hike plan by attorney Molly Munger -- listed as Proposition 38 on the November ballot -- reported that she has contributed another $5 million to the campaign ("Capitol Alert," Sacramento Bee, 8/2).
Munger's tax hike proposal, called "Our Children, Our Future," aims to raise income taxes for all residents, with the highest earners seeing the largest hike. Most of the revenue would support education programs.
On Tuesday, the campaign for Munger's tax hike plan reported that she contributed $7.8 million to the campaign during the first half of the year. By the end of June, the campaign had about $130,235 in cash on hand (California Healthline, 8/1).