Governor Jerry Brown announced Monday his plan to file a ballot initiative to temporarily raise taxes on sales and high income earners. Brown says the proposal would generate $7 billion for the state, which would go directly to schools and county inmate housing.
Under the plan, millionaires, singles who make more than $250,000 annually and couples that earn more than $500,000 a year – would all pay up to 2% more in income taxes. The state sales tax would go up by a half-cent. The new taxes would be set to expire within five years.
Republican lawmakers are already criticizing the plan, arguing that California needs jobs, not new taxes. Brown blamed Republicans for blocking a similar tax vote this year. This time, in an effort to avoid what he calls the “partisan gridlock” that bogged down his last effort, he’s taking it straight to the voters. The governor will need to gather signatures to get his plan on the ballot.
WEIGH IN:
Will voters respond differently in November? Brown calls the tax increases “straightforward and fair” – do you agree? Will they help or hurt California’s economy? Do they go far enough to solve California’s budget crisis?
Guests:
Julie Small, KPCC’s Sacramento Reporter
Robert Schoonover, president of SEIU local 721 (represents 85,000 public service city and county workers in Southern California, from healthcare to social services)
Chris Thornberg, Principal with Beacon Economics
Bill Watkins, Executive Director for the Center for Economic Research and Forecasting at California Lutheran University
Tracy Rafter, CEO, BizFed: The Los Angeles County Business Federation