California voters consider making high-income tax hike permanent with Prop. 3

California voters are set to decide on Proposition 3 in the November election, which would make permanent the higher income tax rates for the state's top 2% earners. CBS News Los Angeles reported that these tax rates were initially approved with Proposition 30 in 2012 and extended with Proposition 55 in 2016, but are currently set to expire in 2031.

Supporters of Proposition 3 say the tax revenues have funded important programs such as school lunches, smaller class sizes, children's healthcare, and Medi-Cal. They also credit the funds for investments in California's Rainy Day Fund. The tax applies to single filers earning $371,000 or more and couples filing jointly earning $743,000 or more, with these thresholds adjusted annually for inflation.

The measure is expected to generate between $5 billion and $15 billion annually. Endorsements come from groups like the California Teachers Association, California State PTA, California Federation of Teachers, the state Democratic Party, and Democratic gubernatorial nominee Xavier Becerra.

Opponents argue that the original tax hikes were meant to be temporary and that state leaders should focus on reducing spending rather than making these taxes permanent. Groups such as the California Taxpayers Association, Howard Jarvis Taxpayers Association, and the state Republican Party oppose Proposition 3, urging politicians to honor the temporary nature of the original tax agreements.