Reading and listening to (and hearing some background talk) about what sort of tax plan the state’s leaders might offer voters next year, two things are clear to me.
The first is that we will see an extension of at least the income tax rates that were part of Prop 30. The second is that we will see one other tax hike that is packaged as a tax reform to accompany the extension.
Call this “Prop 30 Plus.”
The Prop 30 extension will drop the sales tax while keeping the tax on high-income Californians. It’s likely that Prop 30 rates won’t be made permanent—they’ll just be extended for several more years. This shouldn’t be a hard sell politically. Somebody else gets taxed, and Prop 30 remains a popular idea (It’s easy for politicians to tell voters they did the right thing).