Gov. Jerry Brown’s (D, CA) new budget: more spending and higher taxes!

To summarize: $92.6 billion in spending (7% increase over last year’s); $9.2 billion deficit over eighteen months (half in the first six months, the other half in the next twelve).  Brown is requesting $7 billion in new taxes, mostly from raising the sales tax again (to 7.75%) but with a faux-populist-friendly soak-the-rich* (actually, soak-the-small-business-owner) increase to 10.3%.  Or the state can ‘cut’ an additional $4.8 billion in educational aid (he’s already planning to reduce poverty assistance by $4.2 billion): the most increased spending appears to be in tax relief/local government**… and education.  In other words, that cut would actually be mostly in a projected increase in education spending, which means that it’s not really a cut at all.

Or, to summarize the summary: Brown’s bailing out the municipalities; and he’s trying to blackmail the Californian populace into a tax hike to pay for it by threatening to wipe out an increase in K-12 education funds if they don’t vote said hike in.  See how that works? Increase spending in a line-item; then call the threat to remove that increase a ‘budget cut’ and use it to justify a ‘temporary’ tax.  It’s a great scam; or, rather, it was a great scam twenty years ago, when there was more give in the system. Today, it’s just kind of alarming.

And, just for anybody still ready to believe in old Moonbeam: “Brown had been scheduled to release his general-fund budget Jan. 10, but was forced to unveil it today after it was inadvertently posted to the Finance Department’s website.”  Oops.

Moe Lane (crosspost)

*Not to be rude about this, but California business owners should contemplate that, say, Texas has no state income tax and a state sales tax of 6.25%, with a maximum state/local tax of 8.25%.  Which is one major reason why Texas now has four extra seats in Congress and California’s delegation has stagnated for the first time since it became a state.

**But don’t worry! …The Legislative, Judicial, Executive line item in the new CA state budget isn’t going to take a hit, either.

4 thoughts on “Gov. Jerry Brown’s (D, CA) new budget: more spending and higher taxes!”

  1. I do not see how it is possible to attach a price tag to any tax increase… I am sure the projected “$7 billion in new taxes” is absolutely wrong —as Californian businesses continue to take their business elsewhere (in whole or in part) and Californians have less and less disposable income to buy taxable goods.

Comments are closed.