Small business and anti-tax groups have thrown themselves into a campaign against Gov. Jerry Brown’s proposed tax initiative. Brown's measure would raise income taxes for wealthy Californians, and increase the sales tax by 25 cents.
Opponents say higher income taxes will squeeze struggling small businesses, leading to layoffs.
"That thundering herd in the background is biz and high wealth moving out of state," said Jon Coupal of the Howard Jarvis Taxpayers Association. "We need to stop that hemorrhaging. We can start doing that by defeating this tax increase."
Supporters of the governor’s tax measure say it will stop the cuts to education and public safety. A range of teachers’ organizations and businesses are backing the initiative, which is expected to raise between $8 billion and $9 billion in its first year.