The governor’s compromise with backers of the so-called millionaires tax to meld his tax plan with theirs is a last-minute (desperation?) try to clear the field of competing measures on the November ballot. Steve Harmon, who covers Sacramento for the Mercury News and its affiliate editions, says the deal came together over the weekend when Brown promised to make his plan more progressive. An excerpt:
Brown's revised plan would put a larger burden on individuals who earn $500,000 a year -- raising their income tax rate by 3 percentage points instead of his earlier plan for 2, while reducing his sales tax hike proposal from a half cent to a quarter cent. Those earning between $300,000 and $500,000 would also see more of a tax hike: a 2 percentage point increase, rather than 1.5 percentage point.
The new proposal also is expected to extend the period of the income tax hike from five years to seven.
