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Californian Democrats Attempt To Force The Tax Issue

by Mike Godfrey, Tax-News.com, Washington

20 January 2004

A Californian lawmaker has pledged to make life difficult for the new state Governor Arnold Schwarzenegger by proposing a new bill that will raise income tax on top earners in a bid to cut the state’s mounting fiscal debt.

Schwarzenegger has steadfastly refused to countenance tax increases and chosen to base his first budget upon the twin strategy of spending cuts, which he hopes will raise $4.6 billion, and a $15 billion bond issue.

However, the bill proposed by Democratic Assembly member Wilma Chang calls for state income tax to be increased to 10% on individuals earning over $136,000 after deductions, and to 11% on incomes over $272,000 after deductions. At present, California’s top rate of income tax stands at 9.3%.

Chan revealed last week that 24 fellow Democrats have signed the bill as co-authors. Democrats currently hold 48 of the 80 seats in the Californian Assembly.

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