Proposition 3 would permanently extend California's income tax on people earning over $371,000 a year (or couples earning over $743,000) to fund schools, healthcare and other state services. The tax first appeared in 2012 as temporary, was renewed in 2016 and expires in 2031, generating between $5 billion and $15 billion a year depending on market conditions. If passed, the top rate would stay at 12.3%, and with the additional 1% mental health tax, the highest earners would pay 13.3%, the nation's highest. Backers led by the California Teachers Association have raised more than $40 million, while opponents, including taxpayer groups such as the Howard Jarvis Taxpayers Association, have raised $5,500. A September poll found 58% of likely voters planned to vote yes, but opponents argue schools need less funding amid declining enrollment and that high taxes could drive wealthy residents out of the state.
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