Jerry Brown on Tax Reform
California needs a larger Rainy Day Fund
The next recession, even if it were only of average intensity, would cut our revenues by $55 billion over three years.
That is why it is imperative to build up the Rainy Day Fund--which was recently overwhelmingly approved by the voters--and invest our temporary surpluses in badly needed infrastructure or in other ways that will not lock in future spending.
California has a very progressive but volatile income tax that provides 70 percent of General Fund revenues.
If we are to minimize the zigzag of spend-cut-spend that this tax system inevitably produces, we must build a very large reserve.
Source: 2016 State of the State speech to California legislature
, Jan 21, 2016
Only choice is raise taxes to deal with extreme difficulty
At this moment of extreme difficulty, it behooves us to turn to the people and get a clear mandate on how we should proceed: either to extend the taxes as I fervently believe or cut deeply into the programs from which--under federal law--we can still
extract the sums required.
From the time I first proposed what I believe to be a balanced approach to our budget deficit--both cuts and a temporary extension of current taxes--dozens of groups affected by one or another of the proposed cuts have said w
should cut somewhere else instead. Still others say we should not extend the current taxes but let them go away.
So far, however, these same people have failed to offer even one alternative solution.
Wherever I look, I see difficult choices. But I also see a bright future up ahead and a California economy that is on the mend.
Source: 2011 California State of the State Address
, Jan 31, 2011
Page last updated: Jul 15, 2017