Democrats Outline Plan for Tax Hikes
Democrats say they want to balance the state’s budget in part with a tax hike for wealthy Californians and closing so-called loopholes. Not surprisingly, Republican lawmakers aren’t on board.
Wednesday, July 9, 2008
Democratic leaders say the state needs more revenues to address a multi-billion dollar budget deficit… They’ve proposed higher income tax brackets for the wealthy of ten and eleven percent. They would also roll back a dependent tax credit for top earners and end a tax break for large corporations. In all the plan would raise nearly ten billion dollars. Senate President Pro-Tem Don Perata says Democrats will not retreat from the idea of raising taxes.
“We have lots of opportunity to negotiate. What revenues? If not these, what? ”
But Republican Assemblyman Roger Niello says the plan won’t reach Democrats’ expectations.
“Not only not to produce the revenues that they’re expecting, number one but number two it would significantly harm the economy, an economy that’s already struggling.”
Democrats say they’ll spend the next seven to ten days trying to reach a compromise. But Democratic leaders say either way there will be a vote on a budget—either their plan or a compromise—before August first.