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High: 90º Low: 64º
High; 92º Low: 65º
California Governor Jerry Brown Says Voters Nationwide May Be Coming Around To Tax Referendum
Sacramento, California (CNN) - California moved a step closer toward hopefully solving the state's budget crisis.
Voters there passed Proposition 30 last week, which temporarily increases personal income tax for individuals making more than 250-thousand dollars.
The measure also temporarily increases the sales tax in the state.
California Governor Jerry Brown says the decision may indicate that voters nationwide are ready to follow suit.
The cutting and the deficits are out of control. Our financial health, our credibility as a governing- as a nation that can govern itself- is on the chopping block. And yes, cuts going forward of certain commitments the country's made, that has to be appraised. But so also is revenue and revenue means taxes. And certainly those who have been blessed the most, who have disproportionately extracted by whatever skill more and more from the national wealth, they're going to have to share more of that. And everyone is going to have to realize that building roads is important, investing in schools is important, paying for the national defense is important, biomedical research is important. The space program is an indicator of a world leader. All of that takes money and it's not all going to come out of Wall Street or out of your local department store. It requires the people, through their collective institution called government, to make a greater commitment. And I think they're ready to do it.
President Obama has offered a federal deficit reduction plan that does not extend the Bush-era tax breaks on income over 250-thousand dollars.
Republicans support extending the tax cuts for income of all levels.