Your last-minute guide to Proposition 3, the other tax-the-rich measure

There has been much debate about efforts in California to tax the rich. But almost all of it centers around Proposition 40, the heavily contested billionaire tax, and two countermeasures, Propositions 41 and 42.

But there is another ballot measure that also would tax California’s wealthiest citizens that is getting far less attention — and has even garnered support from some billionaires who oppose Proposition 40.

The basics

Proposition 3 would make an expiring state income tax on high earners permanent.

The impact

Tax rates for the top 2% of earners would remain as they are. Income brackets rise with inflation, but last year the top 2% of taxpayers earned at least $371,000 for single filers and $743,000 for joint filers. Money generated by Proposition 3, like the current tax, would flow to education, with 89% going to K-12 schools and 11% to community colleges.

Dig deeper

In 2012, California voters approved a temporary increase in the income tax rate for the top 2% of California earners. In 2016, voters approved another extension through 2030. Proposition 3 would make the additional levy permanent.

Backers say the measure is crucial to maintain education funding levels and predict there would be grave problems if the measure is not approved. The state could expect to lose $5 billion to $15 billion annually in tax revenue starting in 2031, according to estimates from the Legislative Analyst’s Office.

Opponents say taxes are already too high and the state should focus on cutting waste.

More reading

What to know about Prop. 3 (L.A. Times)

How Prop. 3 fared in Berkeley poll (L.A. Times)

Prop. 3 ballot language (California secretary of state)

Inside the Prop. 3 campaign (EdSource)