The Troubled Woes of California’s Prop 55
Proposition 55 is asking California taxpayers to approve an additional 12 years to the Proposition 30 tax that passed in 2012. Proposition 30 was supposed to be a temporary solution to California’s financial situation, not a permanent fix. It’s not an actual solution to the problem. The State cannot continue to make the same mistakes. A spokesperson from CalChamber states that, “revenue from the personal income tax is highly volatile and any anticipated revenue from this initiative might be significantly reduced when California is faced with future recessions.”
The tax system in California is falling apart and putting stress on the taxpayers. Some people might argue that the economy in California has improved. However, it is argued that the surplus is artificial. It’s artificial because Proposition 30 which passed in 2012 would temporarily raise taxes to prevent more cuts to education. These taxes would help the state now, but it might negatively impact it later on. Lieutenant Governor Gavin Newsom states, “It’s the situational values that define the best of times, and I would argue the worst of politics. The situation demanded short-term thinking. The same thinking that got us into this mess. To quickly deal with the crisis at hand.” Newsom is referring to the problems that lead up to California having all of these financial difficulties, and as a result of those difficulties we’ve had to fix the mess that we were dealt, before we can deal with the current crisis at hand. There are plans in the works to implement a tax on services, and lower the overall tax rate. This new, “Tax structure [would] bring in about $10 billion more annually under a bipartisan government reform proposal.” This plan if accurate in its forecast of revenue would bring a much-troubled system some peace of mind, at least for the time being. So instead of creating a system that would be less volatile for the economy, the government is covering the wound with another band aide.
In a statement by made California State Director Tom Scott, of the National Federation of Independent Business articulates that, “Proposition 55 seeks to break the promise that the taxes approved by the voters in 2012 would be temporary. Governor Jerry Brown and other proponents of Prop. 30 promised that those tax increases would be temporary and were only necessary to provide critical funding for education and public safety.”
California still has two and half more years until Proposition 30 ends, which means that California has enough funding for education. Voting “No” on Proposition 55 will force the State government to do what they promised to do and create a more sustainable economy.
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