SACRAMENTO – With California’s economy remaining sound despite recent economic challenges, Senate Democrats today unveiled the “Protect Our Progress” budget plan, which centers on responsible investments and actions.
The plan includes:
The Senate’s “Protect our Progress” budget plan builds on Governor Newsom’s January proposed budget and serves as a starting point for negotiations with the Assembly and the Governor’s administration. The plan includes $26 billion in solutions and builds total reserves to $38.1 billion.
Among other highlights, the plan provides over $4 billion in tax relief with a 25 percent cut to taxes for small businesses and tax cuts for renters and workers, provides over $3 billion in new ongoing funding for schools and community colleges, $1 billion in ongoing local homelessness reduction funding, and over $1 billion to increase access to child care.
Under the “Protect Our Progress” budget plan, over 99 percent of businesses (more than 1.6 million tax filers) will have their taxes reduced by 25 percent by lowering the current flat corporate tax rate of 8.84% to 6.63% on the first $1.5 million of taxable income.
In addition, about 2,500 of the biggest corporations (just 0.2 percent of all business filers), which have received a 14-percentage point drop in federal tax rates – from 35 percent to 21 percent – will have this reduction partially reversed at the state level, going from 8.84 percent to 10.99 percent on net income over $1.5 million.
Senate President pro Tempore Toni G. Atkins (D-San Diego) and Senate Budget & Fiscal Review Committee Chair Nancy Skinner (D-Berkeley) released the following statements about the Senate’s budget plan:
Pro Tem Atkins:
"There are so many economic uncertainties facing Californians right now, but we can, and we will, make it through this challenging time if we continue to rely on our responsible, common-sense approach to budgeting. Our budget structure, plus new improvements like tax relief for small businesses, continued support for schools and education, and funding to address the ongoing homelessness crisis, will do exactly what the Senate’s budget plan name implies – it will protect our progress so that we can safeguard California families from further financial harm.”
Senator Skinner:
“Our state Senate 2023 budget plan is a proactive response to the lower revenues California expects this year. Budget actions we take can either harm the economy or help economic conditions. Safeguarding funding for our schools, homelessness programs, climate protection, child care, and more will help maintain jobs and lessen negative economic consequences. Our plan preserves the important advancements California has made toward a more equitable and sustainable economy while continuing the responsible budgeting that builds our reserves and rainy day funds to protect California if we face continued economic challenges. And I’m particularly proud that the Senate's 2023 plan will provide much-needed tax relief for small businesses, the backbone of our economy, while ensuring that the biggest corporations that pocketed massive tax cuts during the Trump years start paying their fair share.”
Highlights of the budget plan include:
Click here [2] to read the Senate’s “Protect Our Progress” budget plan.
En Español [3]
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Toni G. Atkins is President pro Tempore of the California Senate. Having previously served as Speaker of the California Assembly, she began her tenure in the Senate in 2016. As Senator for District 39, she represents the cities of San Diego, Coronado, Del Mar and Solana Beach. Website of President pro Tempore Toni G. Atkins: www.senate.ca.gov/Atkins [4]
Senator Nancy Skinner is chair of the Senate Budget and Fiscal Review Committee. She is also chair of the California Legislative Women’s Caucus. She represents Oakland, Berkeley, Richmond, and other East Bay cities. Website of Senator Nancy Skinner: https://sd09.senate.ca.gov/ [5]
Links
[1] https://www.addthis.com/bookmark.php?v=300
[2] https://sbud.senate.ca.gov/
[3] https://sd39.senate.ca.gov/la-l%C3%ADder-del-senado-atkins-la-presidenta-de-presupuesto-skinner-elogian-plan-de-presupuesto
[4] http://www.senate.ca.gov/Atkins
[5] https://sd09.senate.ca.gov/