(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.
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%.
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