(Updates with tax rates in third paragraph.)
Jan. 9 (Bloomberg) -- California Governor Jerry Brown’s proposed tax increases to avoid deeper cuts to schools may raise $2 billion less than projected, the state’s fiscal analyst said.
The temporary boost in income- and sales-tax rates would generate about $4.8 billion in the next fiscal year, less than the $6.9 billion Brown estimated in his budget proposal, released last week, according to a report today from the Legislative Analyst’s Office.
Brown wants to raise income taxes on individuals making at least $250,000 a year to 10.3 percent from 9.3 percent. For those earning $300,000 to $500,000, the rate would climb to 10.8 percent. For single filers with income above $500,000, it would jump to 11.3 percent. Californians with income of more than $1 million are now taxed at 10.3 percent.
The governor also wants to boost the state retail-sales tax rate to 7.75 percent from 7.25 percent. The higher income and sales levies would expire after five years. He wants voters to approve the increase through a statewide election in November.
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