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Modern School

(794 posts)
Mon May 14, 2012, 10:08 PM May 2012

More Cuts for Cali, Even With Tax Increase

In January, Gov. Jerry Brown told Californians that if they didn’t 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

6 replies = new reply since forum marked as read
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More Cuts for Cali, Even With Tax Increase (Original Post) Modern School May 2012 OP
Where to get the dollars? exboyfil May 2012 #1
We have at least 85 billionaires in the state of CA. Starry Messenger May 2012 #2
Highest marginal tax rate in the nation at exboyfil May 2012 #3
I make under 30k a year. My sympathies lie elsewhere. nt. Starry Messenger May 2012 #4
And over 600,000 millionaires Modern School May 2012 #6
Its much more than prop 13 ProgressiveProfessor May 2012 #5

exboyfil

(17,865 posts)
1. Where to get the dollars?
Mon May 14, 2012, 10:24 PM
May 2012

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????

Starry Messenger

(32,342 posts)
2. We have at least 85 billionaires in the state of CA.
Tue May 15, 2012, 01:30 AM
May 2012

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.

exboyfil

(17,865 posts)
3. Highest marginal tax rate in the nation at
Tue May 15, 2012, 07:39 AM
May 2012

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).

Modern School

(794 posts)
6. And over 600,000 millionaires
Wed May 16, 2012, 10:29 PM
May 2012

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%.

ProgressiveProfessor

(22,144 posts)
5. Its much more than prop 13
Tue May 15, 2012, 05:20 PM
May 2012

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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