Jon Coupal from the Howard Jarvis Taxpayers Association talked to John & Ken about another one of these dirty, dishonest Propositions that want to raise taxes to "fund electric vehicles". Lyft is betting heavy on this smelly Prop.
Gavin Newsom finally found a tax-grab Prop that even he won't support. Prop 30 wants to tax the hell out of wealthy people. Lyft is theThe main problem is that wealthy people eventually find a way to leave California, thus taking their wealth with them.
The other major force of opposition is the California Teachers Association, which is furious that none of the revenue generated by Proposition 30 would go to schools. It may also realize that the tax hike could drive away wealthy taxpayers, on whom the state depends to finance schools. The top 0.5% of taxpayers in California pay about 40% of state income tax.
A study this year by Stanford economists found that the 2012 income-tax hike on high earners spurred many to flee the state or modify their behavior to reduce the income tax they pay. As a result, the tax hike raised 55.6% less than would have been expected over the first three years it was in effect. Notably, out-migration was highest among taxpayers earning more than $2 million—those who would get slammed by Proposition 30. The teachers unions not only won’t benefit from the measure; it could cost them.
The teachers union is the most powerful Democratic special-interest group, and Mr. Newsom knows it. If he hopes to win the 2024 Democratic presidential nomination, he will need the union riding shotgun. Hence his cutting ads for the Vote No campaign. An Oct. 4 Berkeley IGS poll showed 49% of likely voters supporting Proposition 30 and 37% opposing it.
Maybe one reason Mr. Newsom is running campaign ads touting California’s cultural progressivism in zero-income-tax states such as Florida and Texas is because that’s where much of his wealthy liberal donor base has moved. If Proposition 30 passes, he will be spending so much time fundraising out of the state that he may only have to file his taxes as a part-time resident.