Extending California’s income tax rate surcharge comes with a high cost including a weaker economy and greater revenue volatility. To preserve critical education funding, the answer is not ever higher tax rates; it’s tax reform that creates a more stable, less anti-growth tax system.
Would you move to Florida for $100,000 a year? Because of California’s steeply progressive income tax rates, that’s the question many are asking. For an increasing number of taxpayers, the answer has become yes — which is why Proposition 3 is so consequential.
In 2012, voters approved Proposition 30, which “temporarily” raised the top personal income tax rates from 9.3% to as high as 12.3%. Proposition 3 would make these surcharges permanent.
Proponents argue, why not extend them? The rates only impact the top 2% who can afford it, while the state gets more money for education and other priorities.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Making income tax surcharge permanent with Prop. 3 hurts state
Wayne Winegarden
Extending California’s income tax rate surcharge comes with a high cost including a weaker economy and greater revenue volatility. To preserve critical education funding, the answer is not ever higher tax rates; it’s tax reform that creates a more stable, less anti-growth tax system.
Would you move to Florida for $100,000 a year? Because of California’s steeply progressive income tax rates, that’s the question many are asking. For an increasing number of taxpayers, the answer has become yes — which is why Proposition 3 is so consequential.
In 2012, voters approved Proposition 30, which “temporarily” raised the top personal income tax rates from 9.3% to as high as 12.3%. Proposition 3 would make these surcharges permanent.
Proponents argue, why not extend them? The rates only impact the top 2% who can afford it, while the state gets more money for education and other priorities.
Such free lunches don’t come cheap.
Read the entire op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.