California governor to seek tax-hike vote

SACRAMENTO, Calif. – Facing another budget deficit and the prospect of deep cuts to education, Gov. Jerry Brown plans to file a ballot initiative as early as today that asks voters to increase taxes on the wealthy and raise the sales tax by half a cent.

The initiative would be intended for the November ballot and would maintain a pledge Brown made during his 2010 gubernatorial race not to raise taxes without a vote of people.

A legislative source who had been briefed on the proposal told the Associated Press on Thursday the initiative would call for adding an extra 1 percent tax on individuals earning more than $250,000 a year.

Individuals making between $300,000 and $500,000 would be taxed an additional 1.5 percent, while those making more than $500,000 would be taxed another 2 percent.

The combination of income and sales tax hikes would raise about $7 billion and expire in 2016.

California is facing a projected $13 billion shortfall over the next 18 months. With tax revenue running behind projections, the budget passed last summer calls for automatic spending cuts after the first of the new year to higher education, public schools and some social services.