Proposition 55: Extension of Personal Income Tax Increases
Available once the California Secretary of State has certified the election. This can take up to 3 weeks or more.
Extends by twelve years the temporary personal income tax increases enacted in 2012 on earnings over $250,000, with revenues allocated to K–12 schools, California Community Colleges, and, in certain years, healthcare. Fiscal Impact: Increased state revenues—$4 billion to $9 billion annually from 2019–2030—depending on economy and stock market. Increased funding for schools, community colleges, health care for low–income people, budget reserves, and debt payments.
Proponents of Proposition 55 claim the measure would affect only the top tax bracket and would lower the sales tax. They claim the proposition includes transparency and accountability measures that ensure that the funds will be used for local education. They also say the measure will prevent budget cuts while continuing to restore funding lost during the recession.
Opponents believe that Proposition 55 wrongly rescinds the temporary nature of Proposition 30 (2012). They claim that raising taxes will not balance the budget and that the state has already sufficiently recovered since 2012. They believe that local education can be funded sufficiently without raising taxes. Finally, they believe the measure will target small businesses and kill jobs.