Analyst Expects Lower Revenue From Brown Tax Deal
SACRAMENTO (CBS / AP) -- The Legislative Analyst's Office is forecasting that a compromise tax measure for the November ballot would generate about $2.2 billion less in the first year than estimates by Gov. Jerry Brown's Department of Finance.
The Democratic governor this week reached a deal with supporters of a rival tax plan. The revised initiative would raise the state sales tax by a quarter-cent for five years and raise taxes on a sliding scale on income over $250,000 a year for seven years.
A review released Friday by the nonpartisan analyst estimates revenue of $6.8 billion in 2012-13, which is $2.2 billion less than Brown's projection. Revenue for the following year would be $2 billion below Brown's estimate.
The difference is in the higher estimates by the governor for capital gains revenue.
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
