It's no secret that the state of California is in a dubious position, facing considerable debt in the wake of our Nation’s recent recession. In order to increase revenue, Governor Jerry Brown has proposed a series of tax increases that will appear on voting ballots next week.
One of the most talked about reforms has been Proposition 30, an amendment to the state constitution that will increase income tax rates among wealthier Californians for the next seven years. The proposal is officially described as a temporary measure to replenish state finances. The extra money will reportedly be directed to schools and universities that would otherwise have to face the budget cuts that are currently necessary for 2012-13, The Huffington Post states.
As explained by the state voter's guide, advocates praise the bill as a means to balance the government budget, promote education and preserve public safety efforts. However, those against the measure have expressed skepticism about whether the revenue will be devoted to schools, and that taxpayers will not be able to account for how the money is actually spent.
While Prop. 30 would raise income taxes for California households making at least $250,000 a year, another tax bill on the ballot - Prop. 38 - proposes that Californians across income brackets see a gradual tax increase over the course of 12 years. That money will reportedly be distributed among K-12 schools across the state, reports the news outlet.
As election day looms, both parties are campaigning hard to sway California residents who remain undecided on this issue. The experienced tax attorneys at Moskowitz LLP in San Francisco will be paying close attention to the results on November 6, and are readily available to help California residents resolve their income tax issues.
Moskowitz LLP, A Tax Law Firm, Disclaimer: Because of the generality of this blog post, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome. Furthermore, in accordance with Treasury Regulation Circular 230, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purposes of (i) avoiding tax related penalties under the Internal Revenue Code, or (ii.) promoting, marketing, or recommending to another party any tax related matter addressed herein.