California voters approve Prop. 3, making a tax on high earners permanent
By Tim Fang
A ballot measure that makes permanent a tax for high-income earners to fund education and healthcare was approved by California voters in Tuesday’s election, AP projects.
The measure, Proposition 3, permanently raises taxes for the top 2% of income earners in the state, instead of letting the higher rates expire in 2031. Voters initially approved the higher tax rates with Proposition 30 in 2012 and approved a 15-year extension with Proposition 55 in 2016.
“For more than a decade, these revenues have helped fund critical programs California families and communities count on…Proposition 3 keeps that progress going for the next generation,” supporters said in the state’s official voter guide.
According to supporters, the funds have been used for school lunches, smaller class sizes along with children’s healthcare and Medi-Cal. Backers also credit the revenue for investments in the state’s Rainy Day Fund.
According to the voter guide, the higher rates apply to single filers earning $371,000 and $743,000 for couples filing jointly, a figure that is annually adjusted for inflation. The measure is projected to raise between $5 billion to $15 billion each year.
The California Teachers Association, California State PTA, California Federation of Teachers, the state Democratic Party and Democratic gubernatorial nominee Xavier Becerra are among those who supported Prop. 3.
Opponents of Prop. 3 argued that the tax hikes initially approved by voters over a decade ago were intended to be temporary and that state leaders should cut back on spending.
“California taxpayers kept their end of the bargain—paying temporary higher income taxes for 16 years. Politicians should keep theirs and stop pushing for even higher taxes,” opponents said in the voter guide. “If Sacramento had spent responsibly, they wouldn’t be asking taxpayers to make ‘temporary’ taxes permanent.”
Groups that opposed Prop. 3 include the California Taxpayers Association, the Howard Jarvis Taxpayers Association and the state Republican Party.
