Amid ‘billionaire’ tax battles, CA ‘millionaire’ tax extension faces few foes
A proposed constitutional amendment designed to extend California’s voter-approved income tax surcharge on high earners has qualified for the November 2026 statewide ballot, according to Secretary of State Shirley Weber.
Proposition 30 was passed by voters in 2012, during the Great Recession-era budget crisis, and voters extended it in 2016. Supporters like the California Teachers’ Association now argue the state’s reliance on those revenues has become embedded in long-term education spending commitments, including expanded transitional kindergarten and universal school meals.
Under existing law, the tax will sunset in 2030, an outcome the CTA argues would cause at least a $10 billion annual reduction in state funding to public schools and community colleges.
While some supporters have dubbed it a “millionaire’s tax,” the levy actually applies to couples earning more than $680,000 or individuals earning more than $340,000. Working from the pre-2102, 9.3% tax rate, the measure adds between 1% and 3% to payers’ tax rates based on their income levels.
California’s 13.3% income tax rates for top earners are the highest of any state.
The measure has been overshadowed by a separate proposal backed by the SEIU United Healthcare Workers West to impose a one-time, 5% tax on billionaire’s wealth. All but 10% of that funding would go to address federal healthcare. The CTA's 800 representative delegates came out against that proposal at their June meeting, arguing “this policy will not provide the sustainable and long-lasting funding that our schools and communities deserve,” according to a statement released by the group.
Supporters of the high-earner tax for public education have been quick to stress it’s been in place for more than a decade, characterizing any rollback of it as a tax cut for the wealthy.
“If this wealth tax is not extended, 1-in-6 educators could lose their jobs and California will lose billions in revenue while the wealthiest get a tax break,” CTA President David Goldberg said. “We are committed to working alongside our communities to ensure that doesn't happen.”
The measure is also backed by the California School Employees Association and California Federation of Teachers.
It’s not clear if any groups will actively oppose it. A spokesperson for California Chamber of Commerce, which opposed extending the tax in 2016, said the Chamber’s board has yet to take a stance on the current iteration. The California Business Roundtable, which, like the Chamber, is battling the proposed billionaire tax, also has yet to take a stand on the CTA-backed high earners tax.
