Steve Hilton proposes tax cuts and spending reductions for California

Republican gubernatorial candidate Steve Hilton has proposed a sweeping tax overhaul for California. His plan aims to eliminate state income taxes for residents earning up to $150,000, while implementing an 8% flat tax for income exceeding that threshold.

To fund these cuts, Hilton intends to implement significant spending reductions, including the permanent termination of the state’s $126 billion high-speed rail project. He also pledged to defund what he termed the “homeless industrial complex,” targeting the billions of dollars directed to homelessness nonprofits.

Additionally, Hilton proposed a 5% efficiency savings target across all state departments and a 10% reduction in the Sacramento bureaucracy workforce. His plan also targets specific expenditures, such as government grants to the Coalition for Humane Immigrant Rights (CHIRLA) and nonprofit initiatives led by Jennifer Siebel Newsom.