Big money backs reshaped tax system
November 20, 2011
A $10 billion tax increase for Californians is the objective of a ensemble of billionaires and political insiders seeking to place an initiative on the Nov. 2012 ballot.
Proposing an answer to the state’s constricting finances, a group calling itself the Think Long Committee (TLC) envisions an additional $5 billion for public schools and billions more for public universities and local governments. [Los Angeles Times]
Included on the TLC panel are philanthropist Eli Broad, billionaire investor Nicolas Berggruen, Google Chairman Eric Schmidt, and former governors Arnold Schwarzenegger and Gray Davis. The committee plans to unveil its proposal Monday in Sacramento.
Berggruen said he will sink $20 million of his own money into the campaign.
Funding will “not be a problem this group will have,” he said.
Based on reorganizing the current state tax system, the blueprint would lower California’s personal income and sales tax, create a new tax on services which currently escape levies, and eliminate most state income tax credits.
The proposal’s primary opponents will come from public education unions.