This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Brown's Calif. Tax Initiative Hit From Both Sides

JULIET WILLIAMS

SACRAMENTO, Calif. (AP) â¿¿ After returning to the governor's office, Jerry Brown criticized a political culture he said lacked a common purpose and warned of a "war of all against all" unless the sniping camps learned to compromise and fix California's persistent budget problems.

Those efforts failed, and now the Democratic governor finds himself fighting his own political battle as he tries to persuade voters to pass a $6 billion tax increase on the November ballot that he says is crucial for closing the state's deficit.

With the election just a month away, Brown's initiative to boost the statewide sales tax by a quarter-cent and income taxes for those earning $250,000 a year or more is in jeopardy, primarily due to a wealthy brother and sister who are at opposite ends of the political spectrum, and Brown's own missteps.

The political slugfest is bad news for Brown's Proposition 30 and a competing tax initiative from Molly Munger, a liberal-leaning Los Angeles civil rights attorney who is the daughter of a billionaire executive for Warren Buffett's Berkshire Hathaway.

She has spent $34 million so far in support of Proposition 38, which would raise about $10 billion a year through a broadly based income tax increase and send the revenue directly to school districts, bypassing the Legislature.

Her brother, Stanford physicist Charles Munger Jr., is a conservative who has poured more than $20 million of his fortune into a committee aimed at defeating Brown's ballot initiative and supporting a separate initiative targeting public employee unions.

The attacks from both Mungers have so angered Brown's Democratic allies that they issued a statement saying they would become known as "the millionaires who destroyed California's schools and universities."

California initiative campaigns are often exercises in excessive spending, but this fight is unusual because much of it is taking place between Democratically aligned interests seeking to accomplish essentially the same thing â¿¿ restoring funding to California schools after years of budget cuts.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs