CALIFORNIA IN BRIEF : SACRAMENTO : Higher Taxes on the Wealthy OKd

Legislation that would increase income taxes on the wealthy and use the higher revenues to subsidize Social Security taxes paid by the middle class was approved by the Assembly. The bill by Assemblyman Johan Klehs (D-San Leandro) would increase the state income tax rate to 14.3% from 9.3% on income exceeding $110,000 for single people and $220,000 for married couples. The change would raise about $2.1 billion a year that would be used to establish a 10% tax credit on Social Security taxes state residents pay to the federal government. The bill was sent to the Senate but has little chance of being enacted this year because Gov. George Deukmejian has said he will oppose any attempt to increase general taxes.