Proposition 30 Essay

2375 Words10 Pages
Proposition 30 is going to bring billions of dollars to the school system, It is going to insure budget cuts will not take any immediate effects, and help to revitalize the already crumbling school system. Proposition 30 increases the state sales and use tax rate .25 percent for four years (from January 1, 2013 through December 31, 2016); and increases personal income taxes for single taxpayers with a taxable income exceeding $250,000 – adding three new tax brackets of 10.3 percent, 11.3 percent, and 12.3 percent – for seven years (2012 through 2018). The initiative was sponsored by Governor Jerry Brown and the California Federation of Teachers. (CalTax “Prop 30”, 1)
In this process of dissecting proposition 30 and evaluating its pros
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State income tax rates range from 1 percent to 9.3 percent on the portion of taxpayer’s income in each of several income brackets. (These are referred as marginal tax rates.) Higher marginal tax rates are charged as income increases. The tax revenue generated from this tax – totaling 49.4 billion during the 2010 – 11 fiscal years – is deposited into the state’s general fund. (CalTax “Prop 30, 2) In addition, an extra 1 percent tax applies to annual income over $1 million (with the associated revenue dedicated to mental health services).
The additional marginal tax rates would increase as taxable income increases. For joint filers, for example, an additional 1 percent marginal tax rate would be imposed on income between 500,000 per year, increasing the total rate to 10.3 percent. Similarly, an additional 2 percent marginal tax rate would be imposed on income between 600,000 and $1 million, and an additional 3 percent marginal tax rate would be imposed on income above $1 million, increasing the total rates on these income brackets to 11.3 percent and 12.3 percent. These new tax rates would affect about 1 percent of California personal income tax filers. (These tax payers currently pay about 40 percent of the state personal income taxes.) (Attorney General, 2) Being that this measurement is only going to affect about one percent of California’s tax filers, it does not appear to be a significant
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