Capitol Alert
The latest on California politics and government
July 12, 2012

The likelihood of open warfare between Gov. Jerry Brown and civil rights attorney Molly Munger, who have rival tax increase measures on the November ballot, has increased with the formation by Brown’s supporters of a committee to oppose Munger.

Stop the Middle-Class Income Tax Hike–No on Prop. 38 has filed a statement of organization with the secretary of state’s office, with political consultant Jason Kinney as treasurer and Dr. James Hay, president of the California Medical Association, as its “principal officer.” The CMA supports Brown’s Proposition 30.

Proposition 30 would raise sales taxes slightly but would derive most of its revenue from hefty increases in income taxes on taxpayers with taxable incomes of $250,000 or more. Although billed as a measure to support schools, its proceeds would generally close a chronic deficit in the state budget.

Munger’s measure, which is backed by the PTA, would raise income taxes on all but the lowest income taxpayers and its proceeds would boost school spending.

Brown attempted to persuade Munger to drop her measure but she refused. As part of the state budget, the Legislature passed a bill to elevate Brown’s measure to the top of the ballot and Munger attempted, in vain, to block the shift with a lawsuit.

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