Calif. Gov Warns Of School Cuts If Tax-hike Fails
By JULIET WILLIAMS
SACRAMENTO, Calif. (AP) California Gov. Jerry Brown kicked off his campaign for tax increases at a Sacramento high school on Wednesday, warning that passing Proposition 30 is the only way to avoid billions of dollars in cuts to schools and higher education.
He stressed the part of the initiative that would impose higher income tax rates on higher-income earners. The other part would raise the state sales tax a broader tax increase that would affect nearly every California consumer.
Flanked by students at a news conference outside New Technology High School, Brown highlighted the message that the temporary tax increases are needed to stave off deep budget cuts that could include shortening the school year by three weeks. About $6 billion in cuts will be triggered automatically if voters reject the initiative."This is the most critical issue on the ballot this November, other than the presidency itself, because it's about the future, it's about our kids and it's about whether California, as a democracy, can make a public decision for our schools and take this responsibility that for at least the better part of a decade has been shirked," Brown said. "To those whom much has been given, much will be required," he said. The income tax increases would raise tax rates by 1, 2 or 3 percent for individuals who make more than $250,000 a year. The higher rates would remain in effect for seven years. The Democratic governor did not touch on the proposed quarter-cent increase to the state sales tax, which would be in effect for four years. Instead, he noted that California's sales tax rate would be lower than it was last year, before temporary sales tax increase enacted three years ago expired. Critics of Proposition 30 from Brown's political left and right responded to Brown's kickoff event by making their strongest argument against his initiative: That it provides no new funding for schools.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV