Yes on California Proposition 55

A Yes vote will continue the tax increase previously approved via Proposition 30. Our experience to date shows that persons in the higher tax brackets are now more nearly paying their fair share of state income taxes. And the positive effect on California’s fiscal status has been phenomenal.

Just look at these solid year-over-year gains in both personal and corporate income tax revenue:

Personal Corporate (numbers are in billions of dollars)

FY 2011 54.261 7.233

FY 2012 64.484 7.783

FY 2013 66.522 8.107

FY 2014 70.238 8.910

Despite all evidence to the contrary, there are some who want to roll the tax back, claiming, without justification, that continuing it would “inflict economic damage”. Those people aren’t thinking outside the box.

Globally, the economy is weakening. California is a major player, so our economy will be impacted too. And nationally, California is one of the dozen or so states that consistently provide more federal tax revenue than we receive back in federal government grants: the others get a net gain. And Uncle Sam is going to be keeping even more of our money. For instance, the disastrous flooding in Louisiana will cost something like $8-12 billion to clean up. Since Louisiana’s economy was already in the tank, owing to the former governor’s Tea Party style tax-slashing, we’ll be called on to help out – a lot. And, unfortunately, we also have some of our own problems that need tending to.

Now is NOT the time to be cutting California’s revenue!

John H. Terrell