It looks like the biggest traffic jam in California next year may well be the various tax increases being pushed for the November ballot.
So far, at least five big tax measures are in play. Think Long Committee for California, a group of high-powered movers and shakers funded by billionaire Nick Berggruen, has proposed a $10 billion revenue increase by expanding the sales tax to services. A teachers’ union is advocating an income tax increase on those who earn more than $1 million annually to fund schools. Environmental activists are trying to generate $1.1 billion for clean energy by taxing out-of-state businesses. Another measure would tax oil and gas generation to help pay for education and state universities.
And then there’s Gov. Jerry Brown’s recently announced measure to temporarily increase the sales tax and bump up income tax rates for the state’s top earners. Brown had hoped to have a ballot measure last June to extend a temporary increase in income, sales and vehicle license fee rates that went into effect in 2009, but was unable to coax a single Republican legislator into voting even to put such an extension on the ballot. Hence, the tax increases have all expired.