Brown plans ballot initiative for sales tax hike
SACRAMENTO — Facing another budget deficit and the prospect of deep cuts to education, Gov. Jerry Brown plans to file a ballot initiative as early as today that asks voters to increase taxes on the wealthy and raise the sales tax by half a cent.
The initiative would be intended for the November ballot and would maintain a pledge Brown made during his 2010 gubernatorial race not to raise taxes without a vote of people.
A legislative source who had been briefed on the proposal but was not authorized to speak publicly told The Associated Press on Thursday the initiative would call for adding an extra 1 percent tax on individuals earning more than $250,000 a year.
Individuals making between $300,000 and $500,000 would be taxed an additional 1.5 percent, while those making more than $500,000 would be taxed another 2 percent.
Joint filers who earn more than $500,000 would face an extra 1 percent, those making $600,000 to $1 million would face an extra 1.5 percent, and those making more than $1 million would be taxed an additional 2 percent. The combination of income and sales tax hikes would raise about $7 billion and expire in 2016.
The governor declined comment on his tax plan Thursday.
He did make a rare appearance before a joint legislative committee to press lawmakers for public employee pension reform, which he says is needed first in order to win public support for taxes. He wants to increase the retirement age, get local and state government workers to pay more toward their pensions and retiree health care, and place new workers into a hybrid plan that includes 401(k)-style accounts.
"Without pension reform, I don't think we'll have the credibility to ask people to do other things that are very much needed," Brown told lawmakers.
Brown's political adviser, Steve Glazer, would not confirm he administration was ready to submit the language for a ballot proposal but said the approach fits with the governor's budget philosophy.
"The governor continues to promote a balanced solution to the state budget that combines difficult cuts and efficiencies with adequate revenue that protects schools and public safety," he told the AP.
