Extension of income tax for high income earners

I was a bit hesitant on this one, as we wouldn’t need to extend this income tax (which was promised as temporary after the recession) if not for Prop 13. Passed in 1978, Prop 13

• Capped property taxes at 1%;
• Capped assessed property value increases at 2% per year; and
• Required a two-thirds majority in both legislative houses to increase taxes

This has starved the state of funds (especially for schools, primary benefactors of property taxes), incentivized homeowners to favor exclusionary zoning which drives up rents, and ties the hands of legislators looking to address problems with new revenue. The interests it’s entrenched make it unlikely to be repealed, which would require a new ballot proposition. Property, particularly land, is the most economically efficient tax base since its production is fixed and therefore can’t respond to tax levels like income or consumption do. Repealing Prop 13 and raising the state property tax would yield billions.

That said, I believe opportunities to raise taxes must be taken when available. California has many important projects, and taxes are a better mechanism than unfunded bond measures like Prop 51.