SACRAMENTO (AP) – Gov. Jerry Brown will propose offering a $380 million tax credit for the working poor as part of his revised budget Thursday.
Information provided by the Brown administration says the tax credit would help as many as 2 million people who earn up to $13,870 a year for a family of four.
The tax credit proposal was first reported by the Los Angeles Times.
Brown has been under pressure from fellow Democrats and social welfare groups to spend some of the surplus revenue pouring into state coffers this year as California rebounds from the recession.
The governor has mostly opted for a restrained approach and urged caution on spending new revenues.
His administration says the average tax credit under would be $460 a year with a maximum credit of $2,653.