Proposition 3 – Permanent Tax on High Earners
Proposition 3 – Permanent Tax on High Earners
Position: No Position
The tax, first enacted in 2012, is set to expire in 2031. Under the measure, income taxes for top earners range from 10.3% for individuals earning more than $360,000 to 12.3% for individuals earning more than $721,000, with graduated rates in between.
Eighty-nine percent of the revenue goes to K-12 public schools and 11% goes to community colleges, with any excess going to public healthcare. The tax typically raises between $5 billion and $15 billion annually.
Link: More Information
Arguments in Support: The tax has been a vital source of revenue for schools. Supporters say that if Proposition 3 fails, the loss of up to $15 billion annually for schools will likely lead to layoffs, program cuts, and other reductions.
Arguments in Opposition: Opponents point out that California already has some of the highest income taxes in the country. They argue the measure may spur wealthy Californians to leave for lower-tax states, taking jobs and revenue with them.
Support
· California Teachers Association
· California School Employees Association
Oppose
· California Taxpayers Association