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Mon May 14, 2012, 09:08 PM

More Cuts for Cali, Even With Tax Increase

In January, Gov. Jerry Brown told Californians that if they didnít pass his tax increase initiative in November, he would have no choice but to slash over $5 billion from public education. Since then, tax revenue has been much lower ($3.5 billion) than anticipated, prompting Brown to threaten much deeper cuts, even if his tax initiative passes.

The tax initiative would impose a regressive sales tax on all Californians, including the poor, in addition to a short-term tax increase on incomes of $250,000 or more. It is projected to generate $9 billion, which would have barely maintained the status quo before the latest projections, and hardly made a dent in the $20 billion cut from public education over the past 3 years.


The new round of cuts will likely target health and welfare programs. However, Brown is also expected to squeeze unions. According to the Los Angeles Times, he has already been meeting with Yvonne Walker, president of SEIU local 1000, and he has been actively lobbying for cuts to public sector pensions. But the details of his proposed cuts have not been released, nor has the true size of the deficit, which some believe may be as high as $15 billion. However, one can predict some of his likely demands on the public sector unions: more furloughs, cuts to health care and pensions, layoffs and decreases in certain public services.

Modern School
http://modeducation.blogspot.com/2012/05/more-cuts-for-cali-even-with-tax.html

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Reply More Cuts for Cali, Even With Tax Increase (Original post)
Modern School May 2012 OP
exboyfil May 2012 #1
Starry Messenger May 2012 #2
exboyfil May 2012 #3
Starry Messenger May 2012 #4
Modern School May 2012 #6
ProgressiveProfessor May 2012 #5

Response to Modern School (Original post)

Mon May 14, 2012, 09:24 PM

1. Where to get the dollars?

Go to the public about getting Prop 13 eliminated? As far as I can tell California taxes everything else pretty highly. Any other suggestions to get more dollars????

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Response to exboyfil (Reply #1)

Tue May 15, 2012, 12:30 AM

2. We have at least 85 billionaires in the state of CA.

They are not taxed nearly high enough. There is a proposition that is going to qualify for the ballot that will raise taxes on the wealthy if we can get enough votes.

Prop 13 would only get reformed if you could find a way convince voters that reform will grandfather-in family homes to keep their Prop 13 tax rates, and dump the corporations who really are the abusers of Prop 13. Conservatives are still controlling the narrative that reforming any part of Prop 13 will put Grandma out on the porch.

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Response to Starry Messenger (Reply #2)

Tue May 15, 2012, 06:39 AM

3. Highest marginal tax rate in the nation at

10.3%? Propose going to 15.3%. If you can get it, then I say go for it.


We have what could be called a somewhat regressive tax code in our state (8.98% for incomes over $65K with Federal tax deductibility). I have kept that bill down the last 3 years by fully funding my state's 529 for my two daughters (about $1000 in savings each year).

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Response to exboyfil (Reply #3)

Tue May 15, 2012, 08:52 AM

4. I make under 30k a year. My sympathies lie elsewhere. nt.

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Response to Starry Messenger (Reply #2)

Wed May 16, 2012, 09:29 PM

6. And over 600,000 millionaires

Getting the money is easy, if we just find the gall to ask/demand.

Btw, the wealthy and their corporations are paying far lower taxes now than before the Reagan era. Simply returning to then would likely solve the current crisis. However, even prior to Reagan, state and federal taxes were historically low. In the middle of the Great Depression, the marginal rate on income over $100,000 was more than 50% and eventually got up to more than 80%.

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Response to exboyfil (Reply #1)

Tue May 15, 2012, 04:20 PM

5. Its much more than prop 13

The two follow ons which forced super majority for all new taxes, made it harder to call new levys fees, and finally Prop 4 which limited the top line of Government.

Prop 13 changed the tax sources, the others actually made a big difference

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