It looks like it’s official that the Governor will stick to his guns and once again try to find support for an increase in taxes, but this time he will take the initiative route. After Republicans refused to support any tax increases earlier this year, the governor has been forced to take his plans directly to the voters through a signature-gathering campaign. After all, you’d be hard-pressed to find anyone at this point who believes a bipartisan tax deal is likely in 2012. Details of the governor’s plan were slated to be released on Friday, but then the Administration apparently changed its mind and the specifics will come out on Monday. But what’s the gist of Brown’s proposal? Essentially he wants to raise $7 billion annually by taxing the rich and hiking the sales tax by half a cent. Both of these tax hikes would expire at the end of 2016. The “rich” would be defined reportedly as those earning more than $250,000 for individuals and $500,000 for joint filers. The Bee reports:
“The Democratic governor crafted his November 2012 initiative with legislative leaders and major labor unions behind closed doors, relying on polls showing voters may be willing to tax the wealthy and pay more for schools.”
But the governor isn’t the only one setting his sights on tax increases, as there are now 4 other efforts in the works as well. To keep you in the know, here’s a quick rundown on what else is out there:
1. CA Federation of Teachers: This outfit is proposing to tax the wealthy also; namely, those earning more than $1 million would see their income taxes go up so that schools would receive more funding. This proposal is projected to raise $6 billion
2. Californians for Clean Energy and Jobs: In an attempt to raise $1.1 billion, out-of-state companies would see their corporate taxes increase so that clean energy projects could be funded.
3. Think Long Committee: This proposal has a few components; one, raise taxes on out-of-state firms; two, extend the sales tax; three, reduce income and corporate taxes. This would reportedly raise $10 billion.
4. Molly Munger’s proposal: In order to rake in $10 billion, this civil rights advocate is getting behind a plan that would raise income taxes for most Californians (except the poor). The funds would go toward education, preschools and early-childhood development programs.
Concerns have already been raised that with 5 tax plans floating, voters may be less receptive or that the different proposals will cancel each other out. Californians traditionally turn down measures that involve taxes, as the Chronicle reports that “Voters have rejected the last seven tax-raising measures put before them, and history shows that when Californians see similar-sounding measures on the ballot, they vote no on all of them.”