California Healthline Daily Edition

Summaries of health policy coverage from major news organizations

Report Identifies $7.3B in Operational Savings, Revenue Increases

On Monday, the California Taxpayers Association released a report that outlines operational changes and non-tax "revenue enhancements" in state and local governments that could save $7.3 billion, the Sacramento Bee's "Capitol Alert" reports.

The savings -- about 5% of annual state and local tax collections -- approach the revenue estimates for tax hike plans developed by Gov. Jerry Brown (D), supporters of the "Millionaires Tax" and attorney Molly Munger.

According to "Capitol Alert," the report could serve as ammunition for opponents of the tax plans (Walters, "Capitol Alert," Sacramento Bee, 4/23).

Details of Tax Hike Plans

The compromise tax proposal by Brown and supporters of the Millionaires Tax would:

  • Increase the personal income tax by one percentage point for individuals who earn $250,000 annually or couples who earn $500,000 annually and by two percentage points for individuals who earn $300,000 annually or couples who earn $600,000 annually;
  • Extend the income tax increases on wealthy residents from five to seven years; and
  • Increase the sales tax by a quarter of a cent.

The compromise plan would raise an estimated $9 billion over the next fiscal year.

The plan is rivaled by a tax hike proposal by Munger, called "Our Children, Our Future." Munger's plan aims to raise income taxes for all residents, with the highest earners seeing the largest hike (California Healthline, 4/13).

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