California lawmakers OK budget after lengthy impasse

[lisa58]

Source: Reuters

SAN FRANCISCO (Reuters) – California lawmakers approved on Thursday a state budget package to close a $42 billion deficit, ending a lengthy standoff with a slate of bills that aim to raise taxes, slash spending and increase borrowing with Gov. Arnold Schwarzenegger's signature.

Both houses of the Democrat-led legislature passed the package and Schwarzenegger, a Republican, is eager to sign it. "Certainly as soon as we can," said spokesman Aaron McLear.

The early morning votes for the 18-month spending plan ended an impasse in the legislature of more than 100 days over balancing California's books during which the state's economy weakened significantly and substantially cut its revenues.

The package provides for $15 billion in spending cuts, $12.8 billion in tax increases and $11.4 billion in borrowing. It also creates a $1 billion reserve for fiscal 2009 to 2010.



Read more: http://news.yahoo.com/s/nm/20090219/us_nm/us_california_budget_5

[DJ13]

1. $12.8 billion in tax increases

What taxes are going up?

That article doesnt say.

In fact I've read three articles this afternoon and theres a decided lack of specifics in all of them.

[Milo_Bloom]

2. On the news the other day...

I saw that there was a .01 sales tax increase

Vehicle registration fees are going up

Income tax is going up.

They got rid of the .12 gas tax.

[djp2]

11. that 12 cents

per gallon, or about 6% at $2.00 a gallon...not outrageous considering the drop in prices lately. At $4.00 a gallon that would only be a 3% raise.

What is wrong with REpugs...they obviously don't want ANY govt. interference in their fleecing of the populace. Their goal must be the complete removal and/or privatization of all govt. services.

[slackmaster]

4. The biggest one is income tax, which is where most of the state's revenue comes from

The top rate, which applies to earnings in excess of about $44,150, is going up form 9.3% to something like 10.6%. From the highest middle class income tax rate in the country to even higher.

[Massacure]

5. On the flip side their properties taxes are capped at 1%

[slackmaster]

6. Property taxes aren't even paid to the state, and never have been

They are paid to counties and municipalities. They can be increased by up to 2% per year.

Counties and cities can vote in additional property tax assessments to pay for schools and other services.

The low property tax rates in California are offset by high property values. We pay plenty.

[djp2]

12. no they can't

There can be LOCAL increases for the building of school and other public "facilities", etc. called Mello Roos fees
http://en.wikipedia.org/wiki/Mello-Roos
but no general increase in property taxes for local agencies.

[slackmaster]

14. Local bonds add up to about a 10% surcharge on my property tax

And none of that gets paid to the state.

[djp2]

7. Corporations problem..

California Corporations are never reassessed. that means they are still at the 1978 assessments plus 1.3% per year. The rest of us move on an avg. of every 7 years so housing is revalued at that time. It is time to change Prop. 13 as it relates to corporations.

[djp2]

10. oops, that right

its a 2% increase per year over initial valuation at time of sale, which, for corparations, was the 1978 valuation on the books if they existed at that time.

[slackmaster]

13. Yes, the law makes it easy to transfer commercial property in ways that avoid reassessment

That's a problem for the counties.

[djp2]

9. I heard

the tax rate for $44,000 and up went from 9.3 to 9.5%. Wow!! Such a huge increase I'm afraid I can't make ends meet on my teacher's salary.

[slackmaster]

15. I heard it's going up to 10.6%

Based on my back of the envelope calculation, that will cost me personally about $250 during the second half of the year after it kicks in. Combine that with increased sales tax and a doubled motor vehicle registration fee that I will pay in November, that adds up to about the cost I expect to pay for the new eyeglasses I need to buy this year.

Such a huge increase I'm afraid I can't make ends meet on my teacher's salary.

People like me who don't work for the state get to pay more for less. People who do work for the state get to keep their jobs. It's understandable that you and I don't see it the same way.

[djp2]

17. Check the facts...

No it's not unless you make millions...

http://latimesblogs.latimes.com/money_co/2009/02/california-tax.html?cid=148978967

"The agreement will raise personal income tax rates by 0.25 of a percentage point across the board, beginning with the current tax year. The highest rate, on taxable income of more than $1 million, will rise to 10.55% from 10.3%.

The next-highest tax rate, on taxable income of more than $94,110 for a married couple filing jointly, will rise to 9.55% from 9.3%. For singles, the threshold for the new 9.55% tax rate is $47,055."

[crikkett]

3. It's about time! n/t

[djp2]

8. Talk show...

Tonight's talk shows were making the sales tax into a whopping 14% tax increase...

Of course it was an increase of only 1% per dollar spent, but the repugs had to compare the tax to the previous tax or a huge 14% change from 7.25% to 8.25% Who wouldn't want to help the state out by paying whopping 1 cent per dollar more to solve our budget problems.

[slackmaster]

16. I heard it described as about $12.1 billion

Or very roughly $500 for every working person who pays taxes.