Kashkari calls for repeal of sales tax hike

Republican gubernatorial candidate Neel Kashkari on Wednesday called on Gov. Jerry Brown to work to overturn the sales tax increase he championed, and voters approved, in 2012.

“Repealing the … sales tax increase would provide relief to the middle-class Californians who are counting every last penny trying to make ends meet,” Kashkari said in a statement. “I urge Gov. Brown to show real leadership and support this pragmatic step to help those who have already been devastated by his failed record.”

The temporary quarter-cent sales tax increase was part of Proposition 30, a ballot measure to increase education funding that voters approved by 10 points. The ballot measure also contained a temporary income tax hikes on high-income residents.

Attempts to reach Brown’s campaign spokesman were unsuccessful Wednesday afternoon.

The state is projected to receive $1.4 billion from the increased sales tax revenue in this fiscal year, according to the state Department of Finance. Kashkari in his press release did not say what programs he would cut if the increase were repealed.

“Once Gov. Kashkari unveils his first budget, you’ll see exactly where his spending priorities lie,” said senior adviser Aaron McLear.

Any attempt to repeal the sales tax would have to be put before voters.

McLear said voters were misled and deserve a chance to revisit the matter because some Proposition 30 revenues are being spent on teachers’ pensions and “whatever politicians want.”

H.D. Palmer, a spokesman for the Department of Finance, said the Prop. 30 funding can only be spent on K-12 schools and community colleges, but pension fund contributions could be among those expenditures.

McLear added that the state has received more tax revenue and a surplus since then.

“If the governor and Democrats are really concerned about the middle class, the least they can do is repeal this tax hike that is clearly not needed,” he said.

seema.mehta@latimes.com