Unfortunately California unveils plan to plug $15.7bn budget gap by raising tax

California's governor has unveiled a proposal to tackle the cash-strapped US state's $15.7bn (£9.7bn) budget gap.

Unfortunately California unveils plan to plug $15.7bn budget gap by raising tax 6023454160234536

Gov Jerry Brown plans to raise $8.3bn from cuts, as well as $5.9bn in tax rises and $2.5bn from other measures.

The budget hinges on voters passing two tax rises in November. The plan also envisages cutting 5% of payments to state employees, with a four-day week.

California also hopes for $1.5bn in revenue over the next year after this week's Facebook stock flotation.

In outlining the proposal, the Democratic governor said on Monday the state could not overcome its deficit by cuts alone.

"It's taken more than a decade to get into this mess. We're not going to get out of it in a year," he told reporters. "But we're making real progress."

http://www.bbc.co.uk/news/world-us-canada-18067046#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

Unfortunately California unveils plan to plug $15.7bn budget gap by raising tax

Unfortunately California unveils plan to plug $15.7bn budget gap by raising tax

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