California recall candidate John Cox proposes 25% tax cut, big reductions in state spending

Recall candidate John Cox on Thursday expanded on his proposal to cut income tax by 25% across the board and to balance the state’s budget by slashing government spending.

Cox, speaking in Sacramento a day after he previewed his tax cut during a Republican debate, said he’d reduce state spending by $30 billion if he’s elected governor and can persuade the state’s Democratic Legislature to go along with him.

He said his plan would help the middle class, contrasting his proposal with a tax cut outlined by Republican rival Kevin Faulconer. Faulconer proposes eliminating state income taxes for the first $50,000 earned by individuals and $100,000 earned by families, for everyone making less than $1 million a year.

Cox criticized Faulconer’s approach, calling it “very meager in terms of its reach.”

Under Cox’s plan, every household in the state would get the same 25% income tax cut. California has a progressive tax structure with people earning more than $1 million paying a state income tax rate of 13.3%.

California over the next year expects to collect about $175 billion in taxes and fees, with about $123 billion coming from personal income tax.

Since his plan would have California collect less tax, Cox said he wants to slash public “wasteful spending.” He proposed eliminating the state’s high-speed rail and cutting down the film tax program, which gives financial incentives for companies to shoot in California.

He also proposed cutting prison renovations and healthcare for undocumented immigrants. Gov. Gavin Newsom signed a law in July which expands Medicaid to all low-income individuals over 50, regardless of immigration status.

Cox ran for governor against Newsom in 2018, when Newsom won with almost 62% of the vote.

Cox said that if any Democratic legislators don’t want to cooperate with him to “get the job done,” he’d “go into their districts and raise money and talk to voters and get them unelected.”

This story was originally published August 5, 2021 at 3:37 PM.