Reality Check: Proposition 30

By John Kabateck NFIB/CA Executive Director

With so much clutter on this November’s ballot, it’s important for California voters to know which of the 11 propositions will have the biggest impacts on them.  The most highlighted proposition this election is 30 because of the drastic implications it could have on the entire state.  The proponents of Prop. 30 are out proclaiming that it will help fund classrooms – but they need a reality check - Prop. 30 is not as it appears.

You may notice that in the recent Yes on Prop 30 television ads, proponents didn’t even mention the word “tax” in any of them.  But Prop. 30 actually increases the state’s sales and income tax by $6 billion a year.  These tax increases will hurt California small businesses and families and they don’t even guarantee one cent of new money to schools.

Proposition 30 will raise taxes in California to the highest in the nation, both sales and income taxes target consumers and small businesses, further damaging our economic recovery, and killing jobs. An increased sales tax will hurt the buying power of California families, causing them to dig deeper into their pocketbooks to pay for the increased prices of their everyday items.

Small businesses will take on the brunt of these tax increases as most small employers file their income taxes as individuals, not corporate.  So while Prop. 30 increases taxes on small businesses, the backbone of our economy, corporations will not be paying any higher taxes.  The nearly 4 million small businesses in California are already trying to stay afloat during these hard economic times and now they will have yet another burden placed upon them in the form of increased taxes.  California should be encouraging small business growth, not inhibiting it in the form of increased taxes.

Proponents have been misleading voters with their false claims of helping schools.  Though the promises made of increased funding for education from Prop. 30 tax increases sound like a good idea, the reality is that Prop. 30 is a budget gimmick.  Prop. 30 doesn't require that the money raised go to the classroom and it even allows politicians to spend it on things beside schools.  We'll never really know where the money goes.  Politicians say Prop 30's money goes to schools but the official ballot label says it can be used for “funding state budget”.  This proposition is just another gimmick.

Prop. 30 is a bad idea that is opposed by taxpayer groups and small businesses across the state because it raises fifty billion dollars in taxes, hurts California small businesses and families, but doesn't even guarantee new funding for schools.  We need real solutions to California’s problems.  Prop 30 will only make things worse. Please vote NO on 30.