Sacramento, CA 5/4/2012 11:11:34 PM
News / Business

California GOP opposes Governor’s tax increase

Members of the California GOP and anti-tax activists have launched a campaign against Governor Jerry Brown’s proposed tax hike well before the initiative hits the November ballot.

The Democratic Governor introduced a bill that would call for a temporary tax increase to meet budget shortfalls, which will greatly affect public schools and other public programs. The tax hike includes a quarter cent to the state sales tax and additional 1 percent to 3 percent surtax on incomes over $250,000. Both increases would be temporary and end in seven years.

Another tax hike has been proposed by Molly Munger, a civil rights attorney and president of the California PTA. Her tax hike would span a period of 12 years and would raise income taxes on all California residents. Lower income individuals would pay .04 percent more with those making $250,000 or more facing an increase of 2.5 percent.

Without a tax increase, many public programs that give aid to poor people will face drastic cuts.

High-earners in California often have tax attorneys working for them to reduce their tax liabilities. Regardless of the numerous ways get tax relief, GOP leaders in the state are opposed to any tax increases and have launched a campaign to defeat the initiative.

Higher taxes often mean some people will be faced with tax debt and may have trouble paying. This can in turn create IRS problems or impending audits, which can be handled by a California tax lawyer.

Unpaid state and federal taxes can lead to collection activities and high tax debt. A California tax attorney can offer advice and assistance to anyone facing wage garnishment, an audit, or high fines and penalties.