Tax relief is on the way for California families. On the last night of the legislative session, Sept. 15, the Republican-originated plan of a $150 credit per child passed both houses of the California Legislature.
“This is the opening salvo of a new tax revolution,” said Senate Republican Leader Rob Hurtt. “Republicans have declared war on big government and high taxes.” Assemblyman Curt Pringle (R-Garden Grove), the chief legislative architect of the tax cut, noted the political hardship of passing tax relief in a Democrat controlled Legislature.
“This deal was dead a couple of times, but it was never quite dead-dead,” quipped Pringle. Democrat Senate Leader Bill Lockyer only agreed to the tax relief after holding out for, and getting, a 3-6% pay hike for state employees. The Dependent Tax Credit, which is currently $67, will increase $50 a year for the next three years. After indexing for inflation, the credit will be $212 in the year 2000. More than 3 million tax fliers are expected to benefit.
In addition, the tax relief package conforms with the new federal law in that it increases the allowable income levels for persons to put money into tax-deductible IRAs.
Mark Price: a positive message about people and community