Brown Defends Prop. 30, Knocks Schwarzenegger for State's Budget Deficit

RELATED TOPICS:

On Thursday, Gov. Jerry Brown (D) said that his compromise tax hike initiative -- listed as Proposition 30 on the November ballot -- is a "common sense" way to boost state finances, the Sacramento Bee's "Capitol Alert" reports.

Speaking with the Bee's editorial board, Brown criticized former Gov. Arnold Schwarzenegger (R) for leaving the state with an ongoing budget deficit (Yamamura, "Capitol Alert," Sacramento Bee, 9/6).

Details of Compromise Tax Hike Plan

Prop. 30 -- 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 (California Healthline, 8/23).

Brown's Comments

According to Brown, Prop. 30 initially would raise about the same $7 billion that Schwarzenegger lost by eliminating a car tax and not raising taxes on out-of-state firms.

Brown said, "These cuts [in revenue were] made before I became governor," adding, "And there were no cuts in corresponding expenditures."

Brown also criticized Proposition 38, a rival tax hike plan by attorney Molly Munger ("Capitol Alert," Sacramento Bee, 9/6).

Prop. 38 would raise income tax for all residents, with highest earners seeing the largest hike. Most of the revenue would support education programs (California Healthline, 8/23).

Brown said that Prop. 38 would force cuts on higher education and that it would result in more initial cuts for grades Kindergarten through 12 ("Capitol Alert," Sacramento Bee, 9/6).
Richard Rider
California ALREADY has the 2nd worst state income tax in the nation. 9.3% tax bracket starts at $48,029 for people filing as individuals. 10.3% tax starts at $1,000,000. Governor Brown has put on the ballot a prop to change the “millionaires’ tax” to 13.3%, starting at $500,000 – including capital gains. If approved, CA will be by far #1 in income tax rates. We will be 21% higher than the 2nd highest state (Hawaii), 34% higher than the 3rd highest state (Oregon), and a heck of a lot higher than all the rest – including six states with zero state income tax. CA ALREADY has the highest state sales tax rate in the nation. 7.25% (does not include local sales taxes).
Richard Rider
California ALREADY has the 2nd worst state income tax in the nation. 9.3% tax bracket starts at $48,029 for people filing as individuals. 10.3% tax starts at $1,000,000. Governor Brown has put on the ballot a prop to change the “millionaires’ tax” to 13.3%, starting at $500,000 – including capital gains. If approved, CA will be by far #1 in income tax rates. We will be 21% higher than the 2nd highest state (Hawaii), 34% higher than the 3rd highest state (Oregon), and a heck of a lot higher than all the rest – including six states with zero state income tax. CA ALREADY has the highest state sales tax rate in the nation. 7.25% (does not include local sales taxes).

to share your thoughts on this article.