Brown’s Compromise Tax Hike Plan Gains $6.3M in Donations
Supporters of a compromise tax hike initiative by Gov. Jerry Brown (D) donated $6.3 million to a campaign for the plan during the first half of the year, campaign officials reported Tuesday, the Sacramento Bee reports.
The compromise tax hike plan -- listed as Proposition 30 on the November ballot -- had $5 million in cash on hand at the end of June, according to campaign officials (Sanders, Sacramento Bee, 8/1).
Details of Compromise Tax Hike Plan
The compromise tax hike plan -- developed 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 sales tax hike would expire in four years.
The tax would raise an estimated $9 billion over the next fiscal year.
Last month, Brown signed the fiscal year 2012-2013 budget agreement, which includes revenue from the compromise tax hike plan (California Healthline, 7/31).
Details of Donations
According to the campaign, several organizations donated $100,000 or more to support the compromise tax hike plan, including:
- A California School Employees Association political action committee;
- The California Association of Hospitals and Health Systems; and
- The California Faculty Association ("KPCC News," KPCC, 7/31).
Campaign officials reported that 28 legislators donated amounts ranging from $5,000 to $25,000 from their campaigns or ballot measure committeesÂ between AprilÂ and June 30 to boost prospects of the plan's passage.
The funds were collected by a committee called Californians Working Together to Restore and Protect Public Schools, Universities and Public Safety. The group is sponsored in part by Assembly Speaker JohnÂ PÃ©rez (D-Los Angeles), teachers and labor unionsÂ (Sacramento Bee, 8/1).
Munger's Campaign Spends $8.3M
On Tuesday, the campaign for civil rights attorney Molly Munger's rival tax hike plan said that it spent more than $8.2 million during the first half of this year, including more than $2 million on early television advertisements, Sacramento Bee's "Capitol Alert" reports ("Capitol Alert," Sacramento Bee, 7/31).
Munger's tax hike proposal,Â called "Our Children, Our Future," aims to raise income tax for all residents, with highest earners seeing the largest hike. Most of the revenue would support education programs (California Healthline, 7/30).
Munger contributed $7.8 million to the campaign during the first half of the year. By the end of June, the campaign had about $130,235 in cash on hand.
Joe Arellano, a spokesperson for the campaign, said, "This is just a snapshot in time," adding, "We intend to build a competitive campaign that gives us the best chance of winning in November, and we expect to have the resources we need to do that" ("Capitol Alert," Sacramento Bee, 7/31).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.