Permanent Millionaires Tax for Schools & Healthcare
Initiative Constitutional Amendment & Statute
What This Does in Plain English
Back in 2012, California voters approved higher income tax rates on people who earn over $250,000 a year (Proposition 30). Those rates are set to expire in 2031. This measure would make those higher tax rates permanent, ensuring that high earners continue to pay more — and directing that money to K–12 schools and community colleges forever.
The Problem It's Solving
- The temporary tax rates from 2012 have provided billions in school funding — but they expire in 2031.
- California schools and community colleges face chronic underfunding relative to the state's size and needs.
- Allowing the rates to expire would create a major budget hole for education.
What Changes
- Who pays more: Single filers earning over ~$360,000/year; joint filers earning over ~$721,000/year.
- Rates become permanent: The elevated tax brackets from Prop 30 (2012) would no longer expire in 2031.
- Where money goes: 89% to K–12 public schools, 11% to community colleges.
- No new taxes: This doesn't raise rates further — it simply keeps the existing elevated rates in place.
Who Is Behind It
Funded by the California Teachers Association (CTA) and California Federation of Teachers (CFT) — the two largest teacher unions in the state, representing over 400,000 educators.
Who It Affects
- High-income earners (top few percent of California taxpayers)
- K–12 students and public school teachers statewide
- Community college students and faculty
- California's general education budget
Arguments For
- Provides stable, predictable funding for public schools without creating new taxes.
- Voters already approved this in 2012 — making it permanent honors that mandate.
- Directly benefits students and communities that depend on public education.
Arguments Against
- High earners may relocate to lower-tax states, reducing overall tax revenue.
- The 2012 measure was presented as temporary — making it permanent changes the deal.
- Critics argue the state should find other ways to fund education rather than relying on high-income taxes.
Fiscal Impact
Maintains billions of dollars in annual revenue for public education that would otherwise disappear after 2031. The Legislative Analyst estimates this could preserve $8–12 billion annually for schools and community colleges.