This is California Governor Jerry Brown’s pet initiative and he is calling in all of the special interests, business and labor to support his tax increase proposal.
But, Californians should be aware that although this targets high-income taxpayers, the majority of the money raised for the State of California to spend or squander comes from the sales tax increase.
Here are the details of the tax initiative.
- Raises California’s sales tax to 7.5% from 7.25%, a 3.45% percentage increase over current law. (Under the Brown Tax Hike, the sales tax would have increased to 7.75%)
- Creates three new high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, and $500,000. This increased tax will be in effect for 7 years.
- Imposes a 10.3% tax rate on taxable income over $250,000 but less than $300,000–a percentage increase of 9.71% over current policy. The 10.3% income tax rate is currently only paid by taxpayers with over $1,000,000 in taxable income..
- Imposes an 11.3% tax rate on taxable income over $350,000 but less than $500,000–a percentage increase of 17.7% over current policy.
- Imposes a 12.3% tax rate on taxable income over $500,000–a percentage increase of 24.39% over current policy.
- Based on California Franchise Tax Board data for 2009, the additional income tax is imposed on the top 3% of California taxpayers.
Estimated revenue from Proposition 30 vary from Jerry Brown’s $9 billion estimate to the $6.8 billion estimated by the non-partisan Legislative Analysts Office (LAO).. The difference stem for the volatility caused by capital gains income from high-income earners, an issue in California’s tax system previously identified by the Legislative Analysts Office (LAO).
And look at who is contributing. Capitol Weekly has a story.
And, Ballotpedia has a chart.
|California Teachers Association||$1,523,724||1346049|
|PACE of California School Employees Association||$1,250,000||1346049|
|American Federation of Teachers||$1,200,000||1346049|
|Service Employees International Union Local 1000 Issues PAC||$1,053,218||1346049|
|Democratic State Central Committee of California||$1,041,855||1346049|
|California State Council of Service Employees||$1,000,819||1346049|
|California Federation of Teachers COPE||$800,000||1346049|
|United Domestic Workers of America Operating Account||$800,000||1343257|
|California Hospitals Committee on Issues, Sponsored by CAHHS||$500,000||1343257|
|United Brotherhood of Carpenters and Joiners of America||$500,000||1343257|
|Educators and Working Families to Restore California||$360,000|
|State Building and Construction Trades Council of California||$350,000|
|American Beverage Association||$250,000|
|California Medical Association PAC||$250,000|
|California State Council of Laborers Issues PAC||$250,000|
Let the television commercials fly on this tax the rich, I mean tax everybody, tax scheme, because the Democrats who dominate the California Legislature cannot practice fiscal restraint.
I bet this initiative will pass and everyone this next year will be sending more of their hard-earned income to a state government which spends without end.