CA Gov. Tax Plan
SACRAMENTO, Calif. (AP) -- Gov. Jerry Brown said Tuesday that he is working to win support from business and labor leaders for his plan to ask voters to raise income taxes on high-income earners and increase the state sales tax, despite competing initiatives from liberal groups that say his plan hits working people too hard.
The Democratic governor talked about his 2012 ballot proposal during an interview with reporters. He said the key to winning about $7 billion a year in additional revenue is persuading voters that it's necessary to stabilize the state's budget and that the "leadership of California" is behind it.
He said if voters reject the temporary tax increases, "the cuts will be very, very drastic."
California faces a $3 billion midyear revenue shortfall and is expected to face a $10 billion deficit in the fiscal year that begins July 1, resulting in a $13 billion gap over the next 18 months. Brown will release his proposal for the next budget year by Jan. 10.