Jerry Brown's California Tax Hike Plans Questioned
A California legislative analysis indicates Gov. Jerry Brown's tax hike plans could bring in billions of dollars less than the governor estimated.
According to the non-partisan Legislative Analysts Office, raising sales taxes and taxes on high earners is likely to generate just $4.8 billion in the 2012-13 budget and about $5.5 billion in subsequent years, the Los Angeles Times reported Tuesday.
Brown, who hopes to put his tax hike proposals before voters this fall, said they would help close the state's budget deficit over the next five years by generating nearly $6.9 billion annually.
The governor has proposed boosting California's sales tax by half a cent for the next five years and increasing state income taxes on people earning more than $250,000.
The hikes are the linchpin of a $92.6 billion spending plan that Brown unveiled last week.
Brown said California schools and universities will suffer if voters reject his plan.