With the state careening toward another fiscal meltdown, and a new study showing (pdf) that the governor’s proposed budget cuts would cost California 330,000 jobs, increase the unemployment rate by 1.8 percent and deepen the recession, the Democrats in Sacramento are finally talking about serious new revenue sources.
The tax plans proposed by the Senate and Assembly leadership aren’t perfect, but they’re a very good start. The state Senate plan would raise $4.9 billion by eliminating corporate tax breaks (which generally don’t produce jobs anyway), raising the Vehicle License Fee and keeping a modest income surtax. The Assembly plan, announced by Speaker John Perez, relies on repealing tax loopholes and imposing an oil-severance tax.