Attorney General No.
06-0026
Secretary of State No.
1222
Description
Imposes one-time 45% tax on California residents and certain former residents owning property worth more than $40 million on January 1, 2007. Amends Constitution to exempt this tax from 1% limit on ad valorem real property taxes. Imposes additional 15% tax on income for high-income taxpayers. Reduces corporate income tax rate by approximately 54%. Eliminates alternative minimum tax and certain tax credits, including those for head of household and dependants. Creates/increases tax credits, including those for teacher pay, public college tuition, property taxes and health insurance. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: One-time increase in state revenues potentially up to $200 billion from imposition of a wealth tax. This revenue would be allocated to infrastructure spending and debt reduction. Annual increased state taxes-primarily from increased personal income taxes-in the low tens of billions of dollars annually, offset by a commensurate amount of state tax reductions and new refundable tax credits. Potential increase of several billion dollars in annual K-14 education spending and equal or greater reductions in noneducation spending. (06-0026.)
Proponents
Roy A. Ringwood, Bradley Rooker and Paul McCauley
Date
5-19-2006
Document Type
Initiative
Qualified
Failed to Qualify
Recommended Citation
Wealth Tax. Tax Rates. Tax Credits. Initiative Constitutional Amendment and Statute. California Initiative 1222 (2006).
https://repository.uclawsf.edu/ca_ballot_inits/1382