California Healthline Daily Edition

Summaries of health policy coverage from major news organizations

Brown Expected To Propose Tax Hike for Inclusion on 2012 Ballot

Gov. Jerry Brown (D) is expected on Friday to propose a November 2012 ballot measure that would increase income and sales tax rates, the Contra Costa Times reports (Harmon, Contra Costa Times, 11/30).

The Legislative Analyst's Office recently estimated that this fiscal year's deficit will reach $3.7 billion, raising the prospect for automatic cuts to schools, and health and human services programs. LAO also estimated that the state will face a $13 billion deficit in the next fiscal year.

Details of the Proposal

The governor's proposal aims to increase income taxes by:

  • 1% for residents who earn more than $250,000 annually;
  • 1.5% for residents who earn between $300,000 and $500,000; and
  • 2% for residents who earn more than $500,000.

The proposal also would increase the state sales tax by half a cent.

According to sources familiar with the plan, the tax hikes would expire at the end of 2016.

Brown could submit the proposal to the state Office of the Attorney General as early as Friday to start the process of gathering enough signatures to put the measure on the ballot (Mishak/Riccardi, "PolitiCal," Los Angeles Times, 11/30).

Analysts said that even if voters approve the tax hikes, the revenue generated would not be sufficient to cover next fiscal year's estimated deficit of $13 billion.

Several Other Tax Increase Plans Proposed

Brown's proposal comes at a time when several other interest groups have proposed tax plans for the November ballot.

Political analysts said voters could reject all proposed tax increase measures if too many are included on the ballot.

According to the Times, Brown is aiming to drum up support among business, education and labor leaders so that supporters of other measures to hike taxes drop their plans and support his (Contra Costa Times, 11/30).

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