Voters in Proposition 3 California will head to the polls on November 3 to decide whether to permanently extend the additional income tax rates levied on high-income earners.
Supporters argue that public education funding must be secured consistently, while opponents counter that the state’s financial management should be improved before permanently extending taxes introduced on a temporary basis.
The ballot measure aims to maintain the current additional income tax rates applied to the top 2% of earners beyond 2031. If approved, the current rates will become permanent; if defeated, they will expire in 2031 as originally scheduled.
The high-income additional income tax was first introduced in 2012 via Proposition 30 and subsequently extended in 2016 through Proposition 55. It applies to individual filers with annual incomes exceeding approximately $371,000 and joint filers earning over $742,000.
