Bankrupt California City Mulls Tax Hike to Restore SolvencyJune 21, 2013 – In The News
Michael Sweet was quoted in the Reuters article "Bankrupt California City Mulls Tax Hike to Restore Solvency." While the full text can be found in the June 21, 2013, issue of Reuters, a synopsis is noted below.
Almost a year has passed since Stockton, California filed for bankruptcy and its leaders will now review a tax plan aimed at restoring the city to solvency by increasing the city’s sales tax to nine 9 percent.
According to Michael Sweet, a tax plan would bolster Stockton’s standing in court when it files its debt plan. “Folks are thinking about what you need to do to get a plan through the court,” Sweet said. “A tax increase could be a component of a bankruptcy exit strategy.”