Gov. Brown Proposes Tax Increase On Wealthy To Meet Budget Shortfall
SACRAMENTO (CBS13) – Governor Jerry Brown announced a temporary tax increase on wealthy Californians and an increase in sales tax to help generate $7 billion in dedicated funding to go to education and public safety.
In a statement today, Governor Brown said cuts made in 2010 did much to reduce the state’s deficit, but said without additional revenues, state-funded services will continue to suffer.
“Schools have been hurt and state funding for our universities has been reduced by 25%. Support for the elderly and the disabled has fallen to where it was in 1983. Our courts suffered debilitating reductions.”
“The stark truth is that without new tax revenues, we will have no other choice but to make deeper and more damaging cuts to schools, universities, public safety and our courts.”
“That is why I am filing today an initiative with the Attorney General’s office that would generate nearly $7 billion in dedicated funding to protect education and public safety. I am going directly to the voters because I don’t want to get bogged down in partisan gridlock as happened this year. The stakes are too high.”
Brown’s plan, which he calls “straightforward and fair, includes a 2% tax increase on millionaires and high-income earners for five years. He said families making less than $500,000 will not see their income tax rise.
He also proposed a temporary ½ cent increase in sales tax.