Would you move to Florida for $100,000 a year? Because of California’s steeply progressive income tax rates, that’s the question many are asking. For an increasing number of taxpayers, the answer has become yes — which is why Proposition 3 is so consequential.
In 2012, voters approved Proposition 30, which “temporarily” raised the top personal income tax rates from 9.3% to as high as 12.3%. Proposition 3 would make these surcharges permanent.
Proponents argue, why not extend them? The rates only impact the top 2% who can afford it, while the state gets more money for education and other priorities.
Such free lunches don’t come cheap.
