Moonbeam Jerry Brown, the brain-addled Governor of California, is taking a page from Barack Obama’s playbook. [Click here for info on Hollande, Obama's doppelganer]
He is going to solve his deficit hole by squeezing the rich since it is popular these days. I wonder when they’ll bring out the guillotine. At the same time, hundreds of cities, counties, school and local districts are requesting money from taxpayers, which will all go to a vote at the same time.
It’s not only the rich whose taxes will go up, taxes will go up for everyone.
The rich (who make $250,000 – he calls it a “millionaires tax”) will pay 3% more over seven years and the state sales tax will go to 8.4%. Other states are already planning incentives to lure California businesses away. Click here for “Jobs in Texas, Thank California”
He is using education as the weapon against any resistance. He said his $8.3 billion school initiative would be gutted if the taxes are not approved. At the same time, he is increasing funding, he is slashing worker compensation with a longer work week to a 4-day, 38 hour week (that’s a longer work week?)
He’ll reduce funding to courts, save waste in corrections, transfer money from redevelopment to core services.
California’s budget relied on raising revenues but that didn’t happen. This will surely lower revenues but we are talking Moonbeam here. He is beholden to the unions and they want taxes raised on the rich.
…He is asking voters to increase the state sales tax and income taxes on the wealthy to close the state budget deficit at the same time that hundreds of cities, counties, school districts and local special districts are making their own tax requests of voters.
In addition to Brown’s initiative, Proposition 30, more than 230 measures for local taxes, bonds and fees will appear on the local ballots, said Michael Coleman, fiscal policy adviser to the League of California Cities. More than 100 of those initiatives are being put forward by school districts and community colleges for construction bonds and to buy equipment and make repairs.
The rest were placed on the ballot by municipalities, special districts and school districts to increase or renew parcel, utility and use taxes. The number of local revenue measures is comparable to the volume seen during the 2008 and 2004 presidential election years…
With Brown’s initiative leading the ballot this year, voters in many parts of the state will have to consider whether they can afford to support several local tax increases, the statewide tax increases, all of them or just say no.
California has a 10.8% unemployment rate with 2 million out of work. The state has not addressed the pension issue.
Some provisions of Proposition 30 include:
- 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 four high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, $500,000 and $1,000,000. 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 10.6% over current policy of 9.3%. 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 $300,000 but less than $500,000–a percentage increase of 21.5% over current policy of 9.3%.
- Imposes a 12.3% tax rate on taxable income over $500,000 up to $1,000,000–a percentage increase of 32.26% over current policy of 9.3%.
- Imposes a 13.3% tax rate on taxable income over $1,000,000–a percentage increase of 29.13% over current “millionaires tax” policy of 10.3%.
- If this proposition is passed in November, 2012, the income tax will apply retroactively to all income earned or received since the first of the year (1 January, 2012).
- Based on California Franchise Tax Board data for 2009, the additional income tax is imposed on the top 3% of California taxpayers.