Fight Over Taxes Looms Between Democrats & Governor

SACRAMENTO, Calif. (AP) - Gov. Jerry Brown orchestrated the successful push for temporary sales and income taxes on Californians three years ago to help ease the state out of recession and close a multibillion-dollar budget gap. Now that the financial crisis has passed and the economy is rebounding, the fight over taxes can resume. The Proposition 30 taxes are supposed to phase out by 2018, but social welfare groups and some Democrats want to extend them. They're also pitching a host of other taxes, on services, oil and tobacco. All are likely to meet resistance from the Democratic governor, who parlayed his reputation as a fiscal moderate to another term starting this month. Democratic Controller Betty Yee says it's the perfect time to talk about overhauling the state's tax structure.