Brown Says Passage of Proposition 30 Could Prompt National Trend
In an interview on CNN's "State of the Union," Gov. Jerry Brown (D) said that the recent passage of Proposition 30 could be the start of a broader movement across the U.S. to increase taxes on high-income residents, the Sacramento Bee's "Capitol Alert" reports (Siders, "Capitol Alert," Sacramento Bee, 11/13).
Details of the Tax Hike
Last week, voters approved Prop. 30, a compromise tax hike initiative that Brown developed with supporters of the "Millionaires Tax."
The initiative will:
- 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 sales tax hike will expire in four years (California Healthline, 11/7).
Brown said, "[B]iomedical research is important," in addition to tasks such as building roads and investing in schools. He added, "[A]ll that takes money."
Brown said that deficits in U.S. states "are out of control," adding, "Our financial health, our credibility ... as a nation that can govern itself, is on the chopping block."According to Brown, if the economic recovery in California is "decent" and state officials "exercise restraint," the state will be able to balance its budget without the need for further tax increases ("Capitol Alert," Sacramento Bee, 11/13). 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.