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Gov. Brown Strikes Deal On Tax Ballot Initiative

LONG BEACH (CBS/AP) — California Gov. Jerry Brown, legislative leaders and a coalition with which he had been at odds have revealed a deal for a proposed tax increase ballot measure.

The compromise includes a temporary quarter-cent sales tax hike and a 1 to 3 percentage point increase in the income tax rates on high-income earners that would last seven years.

The state Department of Finance said if approved by voters in November, the tax hikes would raise anywhere from $7.1 billion to $9 billion a year at their height.

The Democratic governor announced the deal Wednesday with proponents of a ballot initiative that would have raised incomes taxes on millionaires. The California Federation of Teachers was the chief financial backer of the millionaires’ tax plan.

California Republican Party Chairman Tom del Beccaro slammed the compromise as a “backroom deal with special interests.”

KCBS’ Rebecca Corral Reports:

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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