Analyst Expects Lower Revenue From Brown Tax Deal
SACRAMENTO (CBS / AP) — The Legislative Analyst’s Office is forecasting that a compromise tax measure for the November ballot would generate about $2.2 billion less in the first year than estimates by Gov. Jerry Brown’s Department of Finance.
The Democratic governor this week reached a deal with supporters of a rival tax plan. The revised initiative would raise the state sales tax by a quarter-cent for five years and raise taxes on a sliding scale on income over $250,000 a year for seven years.
A review released Friday by the nonpartisan analyst estimates revenue of $6.8 billion in 2012-13, which is $2.2 billion less than Brown’s projection. Revenue for the following year would be $2 billion below Brown’s estimate.
The difference is in the higher estimates by the governor for capital gains revenue.
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