1. PERSONAL INCOME TAX:
a. 1% increase on incomes of $250,000 ($500,000 for couples). No change from Governor’s initiative.
b. 2% increase on incomes of $300,000 ($600,000 for couples). Governor’s initiative was 1.5%.
c. 3% increase on incomes of $500,000 ($1 million for couples). Governor’s initiative was 2%.
d. These tax increases remain in place for 7 years. Governor’s initiative was 5 years.
2. SALES TAX: increase quarter cent (Governor’s was half cent). Same expiration as the Governor’s.
3. STRUCTURE: The measure will be based on the Governor’s initiative structure, with the changes noted in #1 and #2 above.
4. REVENUES (NOTE: THESE ESTIMATES ARE PRELIMINARY): This new measure will generate about $9 billion for the 2012-13 budget (up from the $6.9 billion in the Governor’s initiative).
Meanwhile Pasadena civil rights attorney, Molly Munger, the daughter of billionaire Berkshire Hathaway chairman Charles Munger, pushes forward with her own initiative despite Brown's claim that the presence of two tax initiatives on the ballot will kill them both. Munger's initiative, "Our Children Our Future," increases income taxes on a sliding scale ranging from 4/10 of 1% for households making less than $35,000 and 2.2% for couples making more than $5 million. It seems unlikely to pass as it raises income taxes on more than just rich people. The tax increase will raise $10 billion and this will be earmarked for K-12 education. The initiative has been endorsed by the California Parent Teacher Association (PTA). Munger has donated $3.4 million to the effort and has already begun airing a very nice television ad. Munger and Brown are talking but have not yet reached any agreement.
Brown claims that all the money raised by his initiative will go to K-12 education and community colleges but this is only technically true because Brown will reduce other funding to schools and colleges in order to balance California's budget.