SACRAMENTO, CA — Statement from Chris Hoene, executive director of the California Budget & Policy Center, on the outcome of the tax and finance measures on the November ballot.
“With the passage of Prop. 3, Californians demonstrated that they are willing to sustain tax increases and authorize investments in vital public services. With the defeat of Prop. 43, Californians also rejected efforts to create undemocratic supermajority requirements to pass local taxes, ensuring that majorities of local voters can determine priorities for their communities.
“While Prop. 40 did not secure enough votes to pass, that doesn’t mean that Californians have stopped believing that taxing extreme wealth and combating inequality is a top priority. Prop. 40 was a novel, complicated measure with much uncertainty that drew skepticism, even from those working to ensure every Californian has access to affordable health care, quality education, accessible child care, and other supports that make day-to-day life more affordable.
“Still, the problem Prop. 40 attempted to address remains. California’s wealth and income are more concentrated at the top than at almost any point in our history. The federal government continues to divest in the well-being of all Americans. State leaders also need a more robust revenue structure to ensure they can meet the needs of their communities.
“Voters’ broad-based passage of Prop. 3, making the state’s top income tax rates on high earners permanent, is proof of their willingness to support that, ensuring that those at the top pay their share.
“Voters’ support for Prop. 42 (which has yet to be called), which would invalidate Prop. 40 and restrict the state’s ability to tax wealth going forward, reflects billionaire-backed efforts to protect their wealth using purposefully arcane ballot measures (including Prop. 41, which was defeated) and misinformation. The final results of those measures demonstrate the outsized influence of billionaires who spent more than $300 million to avoid paying their fair share in California.
“We concur with many other tax experts that a federal wealth tax is the best option for combatting rampant inequality and the affordability challenges of all Americans. But we also know that a national wealth tax is unlikely to happen in the near term, and sometimes needed reforms happen first at the state level.
Building on Californians’ support for Prop. 3, we look forward to working with California state leaders to build a state tax system that asks those with the most to contribute their fair share, reduces corporate tax breaks and giveaways, and gives the state the tools to invest in the families with low and middle incomes who keep our economy running.”
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About the California Budget & Policy Center:
The California Budget & Policy Center (Budget Center) is a nonpartisan research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians. The Budget Center does not endorse or oppose ballot measures.
