Prop 55

Tax Extension to Fund Education and Healthcare. Initiative Constitutional Amendment

This would extend by 12 years the Prop 30 temporary personal income tax increases enacted in 2012 on earnings over $250,000 for single filers and over $500,000 for joint filers. Prop 55 allocates 89 percent to K-12 schools and 11 percent to California Community Colleges plus funding up to $2 billion per year for health care programs. The Legislative Analyst estimates revenue could be in the $5 billion to $11 billion range annually, with amounts varying based on stock market and economic trends.

Bottomline: The Chamber is NEUTRAL on this proposition. We have long been committed to investing in education; on the other hand these taxes were proposed as temporary solution during a crisis. Our Board could not reach the 60 percent threshold for a support or oppose position.