More Details Emerging About State Budget Plan
Some new details are forthcoming about the budget that state lawmakers will vote on Monday night
Monday, September 15, 2008
Lawmakers have been grappling with how to eliminate a fifteen billion dollar budget deficit… Republicans have refused to back proposed tax increases. Instead lawmakers have come up with plans to bring in money earlier from taxes paid by Californians. One plan is to increase Californians’ withholding from their paychecks. In the end taxpayers will get the money back—if they don’t owe it to the government. The plan also calls for taxpayers who file quarterly to give more in the first two payments of the year. Millionaires who get a windfall of cash would have to pay the taxes up front. The plan also has a few elements that will have to be approved by voters—including one to borrow against future lottery earnings. Some have criticized the spending plan as laden with gimmicks— including those from the education sector who are upset about a three-billion dollar reduction to schools.