Nation: Coping with the Tax Cut

California eases the impact with a $5 billion relief fund

While Howard Jarvis strutted around Washington and U.S. mayors fretted in Atlanta about how his tax-cutting crusade might hurt them, California struggled with a more immediate problem. On July 1, the end of this week, Jarvis' triumphantly successful Proposition 13 goes into effect, with its more than $7 billion slash in revenues from property taxes. As a select committee of six of the state legislature's most powerful members worked feverishly on a rescue plan, thousands of lobbyists flocked to Sacramento to apply pressure.


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