The good news for California taxpayers is that “Tax Freedom Day” – the day when what we earn is no longer going to fulfill our tax obligation – is coming up on April 30th. The bad news is that the state is a laggard – 46th in the nation – in getting there. Joel Fox, co-publisher of Fox and Hounds Daily.com says Massachusetts, Connecticut, New York and New Jersey are all up there with California in being high-tax states. All have successful economies with generally well-educated citizens. But high taxes do not necessarily equate with high-quality public services, such as education. This fall, California voters will have a chance to decide on whether to keep a temporary tax increase in place.
“Four years ago we passed Proposition 30 which was a tax increase mostly on the wealthy – there was a piece that went on the sales tax – and that was a temporary tax,” Fox said. “It’s supposed to end in about a year or so. There are folks who are supporting an extension of that temporary tax and they’re going to get it on the November ballot. Now if Proposition expired, as it should, Tax Freedom Day would actually be a week earlier. Voters are going to have a choice: Do they want to keep about $7 – $8 billion a year headed toward education, or do they want to cut the taxes.”
Voters must decide if the extra revenue provided by Prop 30 is actually improving the quality of education in the state. Fox says the Prop 30 tax hits people with high incomes, so it stands a pretty good chance of getting renewed.
Fox was a guest on 790 KABC’s McIntyre in the Morning Show with Doug McIntyre and Terri-Rae Elmer.