Prop. 30 Passes – Now What?

SACRAMENTO -

“The people of California have put their trust in a plan to move forward, and I intend to do everything in my power to honor that trust,” said Governor Jerry Brown in a Wednesday press conference.

The $6 billion hole in Governor Brown’s budget has been filled. Public schools won’t have to cut the class year by 15 days.

But why did the Gov. Brown build a budget that put education at stake in the first place? I asked him.

“Why not take it from prisons?” he replied. “Because we’ve already cut 30 thousand [inmates] and we’ll probably cut more. We already got rid of redevelopment. We already took down pensions for the elderly and disabled.”

So now that the new taxes are the law of the land, how will they work?

Well, say you’re buying a 2013 calendar. If you buy it today, you’ll be taxed under the old scheme. But if you buy it after January 1st, you’ll pay 1/4 more per dollar in sales tax. If it costs 12 bucks, you’ll pay 3 cents more.

As for the increased income tax on California’s highest earners: that tax went into effect the moment voters said “yes” to Prop. 30 and covers income for this year. The checks should start rolling in April 15th, when people file their 2012 tax returns.

Brown says he’s moving forward, mindful that the new tax was approved with a narrow margin.

“We’ve got enough money to get us through to the next election,” Brown said.

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2 comments

  • John95757

    Today, I registered to vote and applied for residency and my new license in WA based on this legislation. I pay more than 50% of my income in taxes, enough is enough. The result, CA is losing my current income and business taxes going forward.

  • Sac_Native

    Perhaps you should look into changing how you file your W-4? I have never heard of anyone getting taxed 1/2 of their income, unless they were claiming 0. If you are an independent adult, paying rent and living expenses you should be able to claim 1-2….