(NBCBAYAREA.COM) California Gov. Jerry Brown on Monday is expected to propose closing the state’s large budget gap with a raft of spending cuts and new taxes on the state’s highest earners.
Faced with a deficit of $16 billion – considerably higher than the $9.2 billion originally forecast – Brown is expected to suggest cuts in health and human services, employee compensation and other areas, spokesman H.D. Palmer told NBCBayArea.com.
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Palmer said the governor would propose adding three new tax brackets for the wealthiest Californians, which would raise their assessments by as much as 3%. Right now, Palmer said, the highest earners in the state pay 9.3% of their income in taxes. Brown’s new plan – which must be approved by voters – would create three new marginal tax rates: 10.3%, 11.3% and 12.3%.