Brown’s shift on tax hikes
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Gov. Jerry Brown has agreed to modify his tax initiative, which if approved by voters this fall would temporarily increase levies on upper-income earners and purchases in the state. Below is a comparison of the old Brown plan and the proposal Democrats unveiled Wednesday.
ORIGINAL PROPOSAL
Would raise the personal income tax rate on individuals reporting income over $250,000 by 1 percentage point. Would hike the personal income tax rate on income over $300,000 by 1.5 percentage points and the personal income tax rate on income over $500,000 by 2 percentage points for five years. Would raise the state sales tax by a half-cent per dollar for four years.
NEW PROPOSAL
Would raise the personal income tax rate on individuals reporting income over $250,000 by 1 percentage point. Would hike the personal income tax rate on income over $300,000 by 2 percentage points and the personal income tax rate on income over $500,000 by 3 percentage points for seven years. Would raise the state sales tax by a quarter-cent per dollar for four years.
Source: Senate Democratic budget office
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