Proposition 30:
To raise funds for public education and public safety,
Proposition 30 would increase income tax on top income earners for seven years
by 1% on single filers making $250,000 or more; 2% on single filers making
$300,000 or more and 3% on single filers making $1,000,000 or more. Additionally, it would increase the sales tax
by ¼ % for the next five years.
Proposition 30 would cost a person making $50,000 a year an extra $62.50
while a person making $100,000 a year would chip in only an extra $125 (based
on average sales tax figures; neither would pay any Prop 30 income tax at that
rate.) The return on this investment
would be three to four times in benefits in school and public safety
services. If Prop 30 fails, the state will initiate trigger cuts of more than $5 billion in education funding.
This initiative measure is directed at school funding as well. However, if Prop 30 fails and Prop 38 passes, there still will be trigger cuts of $5 billion in education as outlined in Prop 30. Here is the tax system set up under prop 38.
| If the taxable income is: | The additional tax on taxable income is: | ||
|---|---|---|---|
| Not over $14,642 | 0% | ||
| Over $14,642 but not over $34,692 | 0.4% of the excess over $14,642 | ||
| Over $34,692 but not over $44,721 | $80 plus 0.7% of the excess over $34,692 | ||
| Over $44,721 but not over $55,348 | $150 plus 1.1% of the excess over $44,721 | ||
| Over $55,348 but not over $65,376 | $267 plus 1.4% of the excess over $55,348 | ||
| Over $65,376 but not over $136,118 | $408 plus 1.6% of the excess over $65,376 | ||
| Over $136,118 but not over $340,294 | $1,540 plus 1.8% of the excess over $136,118 | ||
| Over $340,294 but not over $680,589 | $5,215 plus 1.9% of the excess over $340,294 | ||
| Over $680,589 but not over $1,361,178 | $11,680 plus 2.0% of the excess over $680,589 | ||
| Over $1,361,178 but not over $3,402,944 | $25,292 plus 2.1% of the excess over $1,361,178 | ||
| Over $3,402,944 | $68,169 plus 2.2% of the excess over $3,402,944 |
