California Legislature unveils plan to raise tax on millionaires for schools, other services

California
The California Assembly casts votes at the state Capitol in Sacramento in an undated photo. (Robert Gourley/Los Angeles Times)

The California Assembly casts votes at the state Capitol in Sacramento in an undated photo. (Robert Gourley/Los Angeles Times)

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Democrats in the California Legislature have unveiled a new effort to significantly raise tax rates on taxable income of $1 million and higher, an effort they say would provide billions of dollars to improve K-12 schools and a variety of government services vital to the state’s recovery from the COVID-19 pandemic.

The bill, jointly introduced by 15 Democrats Monday in the Senate, is the clearest sign so far that liberal legislators and interest groups intend to put pressure on business-aligned lawmakers and Gov. Gavin Newsom for new tax revenue before the legislative session ends Aug. 31 — arguing that California’s deep-seated racial and socioeconomic inequities, exacerbated by the current recession, can’t be addressed without more government resources.

“When you take a look at the state, there’s a lot of pain and suffering out there, and we need to put every idea on the table,” said Assemblyman Miguel Santiago (D-Los Angeles), the bill’s author.

Assembly Bill 1253 lays out three new surcharges on income tax for California’s highest earners. It would impose a new 1% surcharge on adjusted gross income starting at $1 million, increasing to 3% for those who earn more than $2 million and rising to 3.5% for taxpayers with income above $5 million.

Read the full story on LATimes.com.

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