Assembly GOP tax plan to drop Monday

Assembly Republicans have crafted a tax plan that is a hybrid of the business licesne fee component used by the govervor and an expansion of the payroll tax plan sought by some business types, sources confirm.

The plan is expected to drop Monday, the deadline for committee bill introductions.

One GOP assemblyman told me the governor's plan has trouble because "I campaigned against gross receipts." That's ar eference to the governor's plan, based on businesses' gross receipts, and the teachers' margin tax, very different but also based on gross receipts.

Thus we see the problem for the governor who helped defeat a different gross receipts tax, which lost by 80-20, and now is presenting one based on the same metric, even though the innards are much different. Reap. Sow. Etc.

"I feel my session started today," one Assembly Republican told me.

I am told the plan fully funds the governor's budget, although some lawmakers are now expressing concerns about tens of millions of dollars in "holes" in that administration fiscal blueprint. That is, there may be a need for more money to balance the budget, even if the support is there for the $7.3 billion Sandoval has put forth. Lawmakers on both money committees have told me the same thing -- that the administration plan may not be Swiss cheese but it is hardly Gouda.

Gubernatorial tax advocates believe there may be room for negotiation with the Assembly Republicans -- a hybrid, perhaps. But the real news here is that some putative supporters of the governor can't stomach anything tied to gross receipts.

Here's how one Assembly insider put it: "The problem we have is that we can only prop up support for the gov's budget for so long. If they start playing hardball, not voting for a tax increase will start looking better and better for the last members of our 11-12 vote coalition."

The 2003 Guinn Gross Hangover continues.