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.