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Next is governor Brown's fantasy of raising revenue dramatically by taxing the rich the governor said the plan will bring in seven billion it's not gonna happen more like four billion.
All right California who's with us right now we have it's agenda Jacobs is what is coming to us from the San Diego.
-- fall what you already Republican strategist you have formally chief of staff are believed to a senior Republican in California is that correct -- Yes that's correct a lot of them I think raping me I want to tell us more about the this what looks like the collapse.
Governor Brown's attempt.
To tax million that -- he wanted to do that in that state the whole idea is falling flat is that correct.
Well actually what he's doing is he's putting this as an initiative on to the ballot in net this coming November.
And he's credit meeting that budget for this year.
On the premise that he is going to pass this for the voters and it includes two things one is a tax increase -- Millionaires -- actually on people who make 250000.
Dollars a year or more which includes small business people small farmers and family arms.
And then in addition to that he's including a half cent sales tax increase that will go into affecting 2013.
Now that we just don't know -- -- for a second on got limited time here but it that was throws mentions it passed was supposed to bring in seven billion dollars.
Now we've got a group within the California legislature I think excitement -- still gonna bring yet the legislative and -- soft as -- to give -- -- billion is that correct.
If it passes -- remember the voters actually have to pass this.
OK so why is it gonna bring in so much less than the -- tax was supposed to bring -- why.
Well what he's doing is he's credit taking it on numbers as to what he predicts the economy to be and the one thing that the legislative analyst's office has said.
This is exactly how we gotten ourselves into the problem is that we are assuming certain economic forecast that.
Cannot be proven right now and actually donate a look like that's gonna happen.
OK last one which that we said that the national media -- is is focusing now on high speed rail in California.
If you -- effectively dead because another price tag was like 98 billion dollars is that dead.
It it isn't because he's actually included bit into the budget this year the budget that's not balance the budget that he needs tax increases.
Just to get through -- not shut down schools he's included the beginning of the high speed rail in the middle of the central valley California.
And oh by the way even if they are able to do construction on it there's no money for it -- Iraq.
Very interesting stories millionaire's tax won't look high speed rail not gonna happen.
-- Jacobs thanks for joining -- we do appreciate you being with us thank you --