Revenue: Perception And Reality
Political reporters spend a lot of their time trying to see if there's such a thing as unbiased "facts" when it comes to state budgets.
I'm still looking... but at least some data released this morning by the Assembly Revenue & Taxation Committee makes for an interesting discussion.
The committee and its chairman, Democrat Johan Klehs of Hayward, have released a "reference book" that examines some of the fiscal realities of the state tax system. It also shows what suggestions would actually mean in dollars and cents.
As you read the following factoids, keep in mind the governor's estimate of the deficit for 2005-06 of $8.6 billion.
What happens if you...
* reinstate higher tax rates (10% and 11%) for those earning more than $138,566 (single) and $277,132 (joint)? $2.2 billion in extra revenue
* increase the overall state sales and use tax by a quarter of a cent? $1.321 billion in extra revenue
* increase the overall state sales and use tax by a full penny? $5.283 billion in extra revenue
* eliminate the state's Refundable Child Care Credit (AB 480)? $225 million in extra revenue
* increase the state taxes on beer, wine, champagne, and liquor by 50%? $79 million in extra revenue
* increase the state taxes on cigarettes by 50 cents per pack? $528 million in extra revenue
Those last 2 are my favorite, because they happen to be the only tax hikes that a recent poll showed most Californians support when it comes to help erasing the deficit.
As Assemblymember Klehs said in releasing this report, "You cannot smoke or drink your way out of this deficit."
[And my apologies for the absence of the past few days... I was attending a two-day retreat of our KQED Radio News division in San Francisco. -JM]
