Prop. 30: California Voters Reject Tax on Rich to Provide More Electric Cars

Proposition 30 would have increased the state income tax by an additional 1.75% on income above $2 million for individuals, with most of the money going toward building charging stations and helping people buy electric cars. However, California’s wealthiest residents won’t see a tax increase after voters rejected the proposition on November 8.
 
Proposition 30′s defeat marks a win for Democratic Gov. Gavin Newsom, who campaigned against it despite his administration’s moves to ban the sale of most new gas-powered cars in the next decade. He branded it a taxpayer-funded giveaway to rideshare companies which, under California regulations, must ensure nearly all trips booked through their services are zero-emission by 2030. The rideshare company Lyft supplied most of the “yes” campaign’s funding.

Groups as diverse as the California Teachers Association and the Howard Jarvis Taxpayers Association opposed the measure. Additonally, there was strong opposition from Governor Gavin Newsom. In fact, many groups maintain that it was Newsom's opposition that was the deciding factor in the proposition's defeat.

Jon Coupal, president of the Howard Jarvis Taxpayers Association, had previously suggested possible reasons for Newsom's opposition, in spite of his stance on electric vehicles: "One can speculate until the cows come home why he dislikes the measure. After all, it certainly qualifies as a “green” proposal. But Newsom receives strong political and financial support from the state’s powerful teachers union, which views the right to raise taxes as their exclusive domain. Or it could be that his very wealthy friends in San Francisco quietly suggested to him that a top marginal rate of 13.3% was high enough, especially when they could move to Austin, Seattle, or Miami and pay nothing."

"Finally, Newsom’s opposition to Prop. 30 may have something to do with his “sub-zero” interest in running for president; an assertion, by the way, that no one actually believes. If he hopes to have a chance of appealing to voters beyond crazy California, support of a massive tax hike isn’t a great strategy," added Coupal.