12/29/2024

Opinion: The Terms of Surrender in California’s Tax Revolt

Ronald Reagan noted in his autobiography that California voters set a “prairie fire” across the U.S. in 1978 when they passed Proposition 13, which cut property taxes by about 57% and made it more difficult for legislators to increase taxes. Nearly 40 years later, many Californians are wondering: Will the tax-revolt mind-set die where it all began?

On the statewide ballot, tax measures are aimed at narrow groups of taxpayers. Proposition 55 would extend for 12 years an additional personal income tax on those who earn more than $263,000. The tax, passed by voters in 2012, was sold as a temporary measure to help the state’s schools after the Great Recession. Proposition 56 would increase the cigarette tax by $2 per pack, a 230% increase. A separate marijuana-legalization measure comes with a state tax and permission for local governments to raise levies on marijuana too.

The 427 local tax and bond measures will affect an even broader swath of citizens. During the state’s June primary, more than 80% of the local tax measures on the ballot passed, according to the California Local Government Finance Almanac. These tax increases do well with voters, because proponents claim the money will be spent on tangible services like police or libraries. The pro-tax sides typically have the most funding, and local governments run “information” campaigns that tell voters all the “wonderful” things their tax dollars will go for.

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