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Prop. 30 tax hike will slow California growth

Published On: Dec 05 2012 09:36:55 AM CST
california tax form
LOS ANGELES -

Economists say tax hike Proposition 30 approved by California voters last month may slow growth in the state but won't derail the fledgling recovery.
    
The proposition boosts sales taxes a quarter-cent and retroactively raises income taxes for the wealthy.
    
The quarterly UCLA Anderson Forecast released Wednesday says jobs will be added more slowly and the statewide jobless rate will improve less quickly.
    
The Contra Costa Times http://bit.ly/TPSt1c says economists believe personal income won't be as robust as originally predicted.
    
Jobs are expected to grow only 1.4 percent next year but should increase by 2.2 percent in 2014.
    
Economists say California's jobless rate should average 10.5 percent by the end of this year, improve to an average 9.7 percent rate next year and drop to 8.4 percent in 2014.