For you night owls, the long awaited tax increase proposals are out this evening, courtesy of the Budget Conference Committee that my good colleague Assemblyman Antonin Adams posted about earlier…including rolling back [about 70%] the dependant child tax credit, a sure winner amongst families, now with less disposable income. Many are staying home this summer because of skyrocketing fuel prices as well as higher costs of food and everything else…couple that with this tax plan…yeah, lots of happy families in California this year.
Of course, we can remind that the State has already enjoyed a windfall of doubling the sales tax per gallon of fuel [worth over $1 Billion in new taxes] in the short time that gas itself has doubled, but I guess that new inflow doesn’t count because it wasn’t directly taken by legislative action.
Also in the plan, pushing up the rates of income tax on the highest income earners, also known as "the rich", "the winners of lifes lottery", "the wealthiest Californians". Raising the rates in two tiers, up to 10 and 11% should strengthen the Mayflower portion of the economy as more investors and companies and their employment load onto those moving trucks.
Businesses left in the state would get a 3 year "holiday" from deducting operating losses, thereby carrying their own tax losses and the State’s for that period of time, another sure-fire economic recovery-stimulus tool!
Overall, about $3 Billion in higher spending, the increase primarily absorbed into health and welfare, almost 6%. Couple that with the nearly $10 Billion in more tax revenue on the back of this economy in this plan [a portion of which is $1.5 Billion from what is probably a very optimistic tax amnesty plan] and you can see how far apart things still are for us with the Republican view.
Maybe some legislators will be seeking voting booth amnesty from taxpayers after these ideas come home to roost this fall.