Los Angeles Times

November 20, 2011 at 9:58am 91 notes

Billionaires, insiders plan to place $10-billion tax hike on 2012 California ballot

Joining the battle over California taxes, a group of billionaires and political insiders say they will place a $10-billion tax increase on the November 2012 ballot.

The Think Long Committee, which includes Google Chairman Eric Schmidt, former governors Gray Davis and Arnold Schwarzenegger and Los Angeles philanthropist Eli Broad, says its proposal would provide $5 billion more for public schools every year and billions for public universities and local governments.

Although the group has prepared a report outlining its proposals, it has not taken the preliminary steps needed to place the ideas before voters. Members have not filed any potential initiatives with the state attorney general’s office or created a campaign committee to finance such an effort. A spokesman for Think Long said those moves would come in the next couple of weeks.

The group’s plan is based on a reshuffling of California’s tax system. It would lower the state’s personal income and sales tax rates and create a new levy of more than 5% on services that are not currently taxed, such as legal work or accounting.

Think Long spokesman Nathan Gardels said members want to “maintain California’s progressive tax system.” Under their proposal, families earning up to $45,000 a year would pay no state income tax, while those making up to $95,000 annually would pay 2%. This would lower some taxpayers’ obligations significantly.

The group also wants to double the current exemption for homeowners and renters on their state income tax and eliminate most other California income tax credits.

— The Los Angeles Times, “Billionaires, Political Insiders Plan to Place $10 Billion Tax Hike on 2012 Ballot.”

Interesting.

test reblogged from inothernews