Proposition 30 passed with 54 percent of the vote after a campaign that warned of dire cuts to education and public services. President Obama’s strong showing in California didn’t hurt, either, said analysts.
“The governor and the public employees’ unions had a great ground game, and of course it was another big Obama year,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association, which opposed Proposition 30.
He said he worried that Proposition 30 will accelerate the exodus of small-business owners and taxpayers. Those earning more than $250,000 annually will see their marginal income-tax rate leap from 10.3 to 13.3 percent. The measure also raises for four years the sales tax from 7.25 to 7.50 cents on the dollar.
Under Proposition 30, California will have the highest top marginal state income-tax rate in the nation. The state already had the highest sales tax in the nation.
“I think it’s going to be a Third World economy on the order of Greece,” said Mr. Coupal. “The impact on the overall economy is going to be a real body blow, and it won’t manifest itself for a couple of years. Then you’re going to have people saying, ‘What happened?’”
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Valerie Richardson covers politics and the West from Denver. She can be reached at firstname.lastname@example.org.
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