Brown’s tax plan falls short
January 9, 2012
A tax hike that Gov. Jerry Brown plans to put before voters in November will raise less than he hoped, according to the Legislative Analyst, which probably will require much deeper budget cuts than previously anticipated.
The plan would raise only $4.8 billion during the first year, $2.1 billion less than the governor and his budget writers had anticipated. Brown has said he will reduce funding for K-12 and colleges in the event voters do not pass his tax plan.
Brown’s proposal would raise on average $5.5 billion annually over the next three fiscal years, according to the analyst.
The governor believes most of the new tax revenues would come from higher income earners each year. The analyst’s office says it’s a nearly even split during the three full years of implementation, with slightly more money coming from the half-cent sales tax hike.