Proposition 3 – Maintain High-Income Tax
IJ Action Recommendation: VOTE YES
Summary
Prop 3 would make a tax increase on the top 2% of earners enacted in 2012 permanent, as it is currently set to expire in 2031. Under the current measure, individuals who earn over $360,000 per year are taxed at a rate of 10.3% and individuals earning more than $721,000 per year are taxed at 12.3%, with tiered tax rates in between.
Supporters Say
Supporters point out that, since this measure was passed as Prop 55 in 2012, 89% of the funds raised from these taxes have gone towards K-12 education, 11% to community colleges, and any excess has gone to healthcare. This has amounted to $5 - $15 billion in revenue each year. If voters fail to make this tax permanent, the state will face dramatic cuts to education spending, resulting in layoffs and cuts to essential services. The Yes on Prop 3 coalition includes the California Teachers Association, SEIU, and the California School Nurses Association.
Opponents Say
Opponents include the California Taxpayers Association and Reform California. They argue that California’s taxes are some of the highest in the country and that this tax should be allowed to expire as planned. Reform California also calls the education spending “wasteful”.
IJ Action Recommendation
VOTE YES. Prop 3 is not creating a new tax, and this tax on the top 2% of earners has provided indispensable funding for education and healthcare. We should make this tax permanent and continue to invest in these key services.
Yes Website
No Website
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