August 11, 2010
Senate Democratic Leader Darrell Steinberg defended the Democratic leadership's tax plan Wednesday against critics on the left and the right who don’t like it because it would increase taxes on the middle class. Steinberg describes his plan as a creative way to pull more money for California from the federal government because it would raise taxes that are deductible on federal returns – the income tax and the car tax – while cutting the sales tax, which is not deductible. The result would be something of a windfall in federal money for California – an additional $2 billion.
May 26, 2010
A corporate tax break the Legislature adopted as part of last year's budget package should be scaled back and its implementation delayed, the nonpartisan Legislative Analyst recommends in a new report.
May 24, 2010
Senate Democrats unveiled a $4.9 billion tax increase package Monday, saying that without new revenue California would be forced to make program cuts that they consider unacceptable. The package would extend the life of temporary tax increases passed last year while delaying the roll out of business tax breaks, most of which were part of the same package adopted a year ago on bipartisan votes in the Legislature.
April 27, 2010
Three months of higher-than-expected tax receipts, which many in the Capitol had hoped would wipe out a big chunk of the state's budget deficit, appear to be coming to an end. April revenues so far have been several billion dollars below projections, with only five more days of envelopes to open at the Franchise Tax Board and the Employment Development Department. Unless the state sees a big end-of-the-month rally, the coming budget season is going to be a bleak one for people who depend on public services, and, potentially, an ugly one for the politicians in Sacramento.
April 14, 2010
Low-income families with children paid state income taxes in 2009 after making about $35,000, according to a new report from the California Budget Project. In 2008, a family of four didn't pay income tax until they made more than $51,000. The change is largely due to the reduction in the size of the dependent tax credit.