Analysts Unsure if Dems’ Budget Would Hike Taxes

On Tuesday, Democratic lawmakers unveiled a budget plan that would adjust how California residents are taxed, but analysts are not certain whether the proposal would raise or lower taxes. Democratic data show that residents would face lower tax burdens in 2011 compared with 2010 levels, but officials with the Department of Finance say that residents already were set to pay less next year because of reduced sales and income taxes and license fees. The nonpartisan Legislative Analyst's Office and the Franchise Tax Board have yet to weigh in on the issue.

• "Budget Panel Approves Democrats' Controversial Tax Plan" (Yamamura [1], "Capitol Alert," Sacramento Bee, 8/4).
• "State Budget Assumptions: Where Politics and Policy Intersect" (Yamamura [2], "Capitol Alert," Sacramento Bee, 8/4).