Brown Says No Sign of Deal With Munger on Tax Increase Proposal
On Tuesday, Gov. Jerry Brown (D) said that there is no indication he will reach a deal on a tax plan with Molly Munger, the proponent of a rival tax measure, the Sacramento Bee's "Capitol Alert" reports.
Brown said that he has corresponded with Munger and that the discussion "left things as they are, with a very fierce campaign on the horizon, which I'm fully prepared for" (Siders, "Capitol Alert," Sacramento Bee, 3/20).
Last week, Brown announced a deal with supporters of theÂ "Millionaires Tax" to merge their proposals into a new single ballot measure.
The attorney general's office released a title and summary for the measure on Friday, allowing proponents to begin gathering signatures for placing the plan on the November ballot.
The newly revised tax plan includes a smaller sales tax hike and a larger personal income tax increase on the wealthy than Brown initially had proposed.
The new proposal also 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, down from Brown's original proposal for a half-cent increase.
The sales tax hike would expire in four years, as called for in Brown's original plan.
The merged plan would raise an estimated $9 billion over the next fiscal year, $2.1 billion more than Brown's original proposal.
Munger's plan -- called "Our Children, Our Future" -- aims to increase income taxes for all residents, with the highest income earners seeing the largest hike. Most of the revenue would support education programs (California Healthline, 3/20).
Brown Defends Compromise Plan
Meanwhile, Brown recently said the compromise plan will not lead to budget volatility, even though it relies more heavily on income tax.
Brown said his goal is to "use the money from the tax measure, if it passes, and pay for [state] programs, pay down debt, and get ready for the next recession with a reserve."
He said bolstering the state's fiscal reserves will help "guard against the falloff in revenue that comes from having so much reliance on the income tax" ("Capitol Alert," Sacramento Bee, 3/20).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.