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.