SACRAMENTO (AP) -- California's Republican lawmakers on Sunday rejected a Democratic proposal for $6.6 billion in tax increases on the wealthy and corporations despite an offer to boost the state's rainy day fund. The failed vote now pushes California's budget impasse into its eighth week with no compromise in sight.The 45-30 vote in the state Assembly was the first since the state began its new fiscal year July 1 without a budget. It came after four hours of debate during which 49 of the Assembly's 80 members spoke.
Democrats offered a revised tax plan that's smaller than the $8.2 billion package they initially proposed last month. Under the new proposal, Democrats called for imposing top income tax brackets of 10 percent on joint filers making more than $321,000 per year, and 11 percent on the portion above $642,000. The highest tax bracket is currently 9.3 percent.
The proposal also called for a temporary suspension on the net operating loss deduction allowed for businesses. And it reinstates a higher corporate tax rate.
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