California Teachers Association Gives $1.5M to Tax Hike Compromise
The California Teachers Association recently reported giving $1.5 million to support a compromise tax initiative developed by Gov. Jerry Brown (D) and supporters of the "Millionaires Tax," the Sacramento Bee's "Capitol Alert" reports.
The donation from CTA is the largest reported thus far for the compromise plan (Siders, "Capitol Alert," Sacramento Bee, 3/28).
Earlier this month, Brown announced a deal with the California Federation of Teachers and other supporters of theÂ Millionaires Tax to merge their tax hike proposals into a new single initiative for 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 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.
The compromise plan still faces competition from a plan by attorney Molly Munger,Â called "Our Children, Our Future."Â Munger's plan aims to raise income taxes for all residents, with the highest earners seeing the largest hike. Most of the funds raised would support education programs (California Healthline, 3/26).
Support for Compromise Plan
SupportersÂ of the compromise proposalÂ are collecting signatures to qualify the initiative for the November ballot.
Brown recently said, "I think we have a decent chance to get it passed" in the fall ("Capitol Alert," Sacramento Bee, 3/28).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.