California Wants to Tax Rich to Solve Budget Woes
Tax the rich! That’s how California Governor Jerry Brown wants to solve the state’s growing budget crisis that now nears $16 billion.
The governor laid out his revised spending plan Monday. It would slash $8.3 billion from almost every part of the state’s government. But it would increase funding for K-12 education if voters approve his proposal to hike income taxes on the rich and sales taxes on everyone.
“We can’t balance this budget with cuts alone,” he said. “The budget I’m proposing will boost funding for education, protect public safety and prevent an even deeper round of trigger cuts.”
The revision comes two days after Brown took to YouTube to urge residents to support his November tax proposal, which he said would prevent “severe” damage to schools. Brown has been hawking a tax hike since he took office in January 2011, but Republican legislators blocked his efforts last year.
The proposal calls for raising income taxes on the rich — those earning more than $250,000 — by up to 3 percentage points for the next seven years. It would affect about 1% of filers.