California – Governor Proposes Temporary Tax Increases to Voters

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
Citing “partisan gridlock” over the last year, the governor said he is going directly to the people because recent budget cuts have negatively affected education and public safety programs.  Without new tax revenues, the governor said, “We will have no other choice but to make deeper and more damaging cuts to schools, universities, public safety and our courts.”
For Further Information:

The Schools and Local Public Safety Protection Act of 2012