SALT Report 1263 – California Governor Jerry Brown filed an initiative with the Attorney General’s office proposing a personal income tax increase on the wealthy and a temporary increase in the state’s sales tax. If passed the initiative would generate nearly $7 billion in funding that would be dedicated to protecting education and public safety programs.
The details of the initiative are as follows:
- Millionaires and high-income earners will pay up to 2% higher income taxes for five years. No family making less than $500,000 a year will see their income taxes rise and fewer than 2% of California taxpayers will be affected by this increase.
- There will be a temporary ½ cent increase in the sales tax. Even with this temporary increase, sales taxes will still be lower than what they were less than six months ago.
- Dedicates funding only to education and public safety programs