Democratic Assemblyman Warren Furutani wants to temporarily increase the income tax rates for California’s wealthiest citizens—those making 250-thousand and more a year. The hike would range from a half-percent to one-and-a-half, creating a new top tax rate of 11- percent. It would end after five years. Furutani says it’s similar to the tax hike Republican Governor Pete Wilson put in place in the early nineties. The Democrat says more spending cuts to education and social service programs just won’t be tolerated.
“But we are putting down the gauntlet right here today, that this is not going to be a cuts only budget. It’s not going to be a cuts only solution. We have to look at the issue of revenue.…”
Furutani estimates his plan will generate nearly 14-billion dollars over the five years. But it would need G.O.P. support, which it’s unlikely to get. The Assembly Republican leader Martin Garrick says adding more tax burden on these Californians who are business owners and job creators would only make the jobs crisis worse.