State Attorney General’s Office OKs Compromise Tax Plan for Circulation
The state attorney general's office has cleared a compromise tax initiative developed by Gov. Jerry Brown (D) and supporters of the "Millionaires Tax" for circulation, allowing proponents to begin gathering signatures for placing the plan on the November ballot, the Sacramento Bee's "Capitol Alert" reports.
The attorney general's office released a title and summary for the measure on Friday (Van Oot, "Capitol Alert," Sacramento Bee, 3/19).
Details of Compromise Plan
Last week, Brown announced a deal with supporters of theÂ "Millionaires Tax" to merge their proposals into a new single ballot measure.
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 would 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 new proposal 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.
The new plan also would extend the income tax increases on wealthy residents from five to seven years.
The merged plan would raise an estimated $9 billion over the next fiscal year, $2.1 billion more than Brown's original proposal (California Healthline, 3/15).
Supporters technically have 150 days after receiving clearance to gather more than 800,000 valid voter signatures. However, "Capitol Alert" reports that supporters are thought to have about six to eight weeks to submit the petitions in time to place the measure on the November ballot (Van Oot, "Capitol Alert," Sacramento Bee, 3/19).
Munger Launches TV Campaign
Meanwhile, Civil rights attorney Molly Munger has launched a campaign to gain support for her rival tax initiative (Sanders, "Capitol Alert," Sacramento Bee, 3/19).
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, 3/15).
The campaign includes a 30-second television advertisement that will air in Los Angeles and San Francisco (Sanders, "Capitol Alert," Sacramento Bee, 3/19).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.