Major Tax Tsunami Warning!
CST continues to sound the alarm about a California Tax Tsunami arriving with the November 2024 election, and that could persist for several election cycles until the cumulative impact on California families and businesses becomes unsupportable.
One big driver is PROP 5 on the November 2024 ballot, a proposal that asks voters to lower California’s constitutionally-set hurdle to pass many new taxes from 2/3 to 55%. If approved by a simple majority of voters statewide, PROP 5 becomes effective immediately, i.e., some tax measures on the November ballot that fail to get 2/3 approval but surpass 55% will get the windfall of a lower threshold. This prospect is precipitating a wave of ambitious November 2024 tax measures. Enacting so many big new taxes at once — and likely additional ones in 2026 — will have a very huge, lasting negative impact on the economics of living and conducting business in California.