California voters to decide on permanent high-earner income tax

California voters will decide in November whether to make certain high-earner income tax rates permanent through Proposition 3. The measure seeks to extend tax rates originally approved by voters in 2012, which are currently scheduled to expire in 2031.

The proposition targets high-income residents, with the current threshold set at $371,000 and adjusted annually for inflation. If passed, the state estimates it would preserve between $5 billion and $15 billion in annual income-tax revenue. The measure would not affect lower tax brackets, only the higher rates applied to income above the specified thresholds.

Supporters, including California Teachers Association President David Goldberg, argue the revenue is essential for funding public services such as healthcare, education, and the state's general fund. If the proposition fails, the current higher tax rates will sunset in 2031.