Joining Forces with Governor Brown
As has been reported by the news media, one week ago the Millionaires Tax Coalition came to a negotiated agreement with Governor Brown, Senate President Pro-tem Steinberg, Speaker Pérez, and their allies by setting aside our separate ballot measures and joining forces on a new initiative to raise needed revenue for California public education and social services.
This agreement represents a major victory for the thousands of Californians who have risen up over recent months to demand that the wealthiest Californians start paying their fair share, that low and middle-income families still reeling from the Great Recession be spared undue burdens, and that our state raise sufficient, reliable revenue to restore cuts to education and vital services.
The California Federation of Teachers, California Calls, ACCE and the Courage Campaign were joined by more than 80 grassroots and labor organizations across our state in supporting the Millionaire Tax. As the leaders of this coalition, we are pleased by the merged initiative, which combines elements of both prior measures. Nobody got everything they wanted out of these discussions. That is the nature of compromise. However, we’re proud that on balance, this is a solidly progressive measure and a great improvement on the governor’s prior proposal.
The new initiative contains the following provisions:
- Of the $9 billion raised in the first year, $8 billion will be achieved through a progressive income tax increase for individual Californians making more than $250,000 a year or households making more than $500,000 a year. No one making less than $250,000 will see an income tax increase.
- The wealthiest 2% of Californians will pay more every year in higher income taxes than the governor’s initial proposal stipulated. This tax will stay in place for seven years, two more than the governor was proposing.
- The new measure reduces the governor’s proposed sales tax increase from ½ cent to ¼ cent.
- 85% of the revenue will be from the higher bracket income taxes, and only 15% will be from the ¼ cent sales tax.
Compared to the governor's original proposition this represents:
- a 50% decrease in the sales tax,
- an increase in the income tax on high incomes,
- and more money to restore cuts (around $2 billion more).
We must ensure the new measure passes. Without it the state would suffer billions of dollars more in cuts, leading to schools and hospitals closing, thousands of people losing their jobs, and millions losing opportunities and services. The new measure will prevent draconian cuts from occurring and will send a signal that the people of California want to fund education and vital services.
In the new merged initiative we lost the clean message that it is time for the top income earners to pay their fair share. But we kept that tenet by making the top 1% pay a vast majority of this new revenue, and millionaires will still pay 3% more on their income. We must all unite behind this very progressive and important initiative to secure the message and secure the funding for public schools, local safety and vital services of California.
A unified front behind this new proposal -- and the resources this unity provides -- significantly increases the chance for passage of a ballot measure that would raise revenue to allow reinvestment in California, rather than the continuing downward spiral of devastating cuts that have become all too common in our state.
The credit for this compromise goes to our tireless volunteers and coalition members whose donations and hard work staging press conferences, rallying at the Democratic Party convention, securing local endorsements and gathering signatures for the Millionaires Tax (more than 400,000 paid and volunteer signatures were collected) created our ability to work with the governor on a unified effort. Because of them, Governor Brown recognized the policy and political improvements necessary to craft a fairer and more progressive initiative that would more successfully address our state's problems and more likely secure the confidence of California's voters.
We are very proud of what our coalition has achieved. Together we have engaged a movement to raise more revenue in our state. We have dramatically moved the powers-that-be to create a substantially more progressive tax measure. We have focused attention on the need to re-fund education in this state. And we won't stop until we finish the job. We will be working hard to pass the compromise measure and working just as hard to make sure that that cuts to vital services and public education –- both K-12 and higher education –- are restored.
Heard something fishy about the Millionaires Tax?
Opponents of the Millionaires Tax -- which now include Chevron, Bank of America, Wells Fargo, and PG&E -- are attacking us using disingenuous arguments. Some are saying it has a "fatal flaw" or would "blow a hole in the budget." We want to make sure you've seen our new flyer Important Facts: Rhetoric vs. Reality, which shows why these and other attacks are not true.
Please download it, print it, and share it with your friends on social media!
Fresno State Students Create Inspirational Video for the Millionaires Tax
On March 5th, more than 10,000 students from all over California marched on Sacramento to demand that the wealthy pay their fair share and Governor Brown end cuts to higher education. Tuition continues to grow at a mind-boggling rate for the University of California, California State University, and community college systems. Students have endured a 300% increase in the last ten years.
There is only one proposed ballot initiative that directly funds higher education: the Millionaires Tax of 2012! We are proud to present the video below, created Fresno State students in support of the Millionaires Tax.
Robert Reich on Saving Higher Education Through the Millionaires Tax
In a powerful blog post entitled "Stop Starving Public Universities and Shrinking the Middle Class," Robert Reich -- the Chancellor's Professor of Public Policy at the University of California at Berkeley and veteran of three presidential administrations -- outlines how the Millionaires Tax of 2012 is the best public policy solution for funding our declining universities. It's definitely worth reading the full piece here, but highlights include:
- America is already making it harder for young people of modest means to attend college. Public higher education is being starved, and the middle class will shrink even more as a result.
- Students in California’s public universities and colleges are facing an average increase of 21 percent, the highest in the nation.
- Public higher education isn’t just a private investment. It’s a public good. Our young people -- their capacities to think, understand, investigate, and innovate -- are America’s future.
- A pending initiative in California would raise taxes on millionaires and use the proceeds to fund public education at all levels. It’s a good idea, and it comes at the right time. Other states should follow.
Read the full post here.
MoveOn.org members vote to endorse the Millionaires Tax of 2012!
After polling its 900,000 members in California, MoveOn.org announced that a remarkable 94% voted to endorse the Millionaires Tax of 2012. MoveOn.org is known nationally as a leading online progressive force in American politics today. Wes Boyd, president and co-founder of MoveOn.org, commented “Our members clearly believe that millionaires who have done so well in our state should do well by our state. We must begin to restore public education, including our worldclass higher education system, to its former glory, and provide this crucial infrastructure, opportunity and support to our kids coming up -- the very same foundation that has made success possible for millionaires in the great state of California.”
The Millionaires Tax campaign is looking forward to working closely with MoveOn.org through November. For more details, click here.
Send us your reason for supporting the Millionaires Tax!
We're going to build a powerful video filled with real human stories of why we need millionaires to help refund education, public safety, infrastructure, and services for children, seniors, and disabled people. Click here to upload a photo with your unique reason for supporting the Millionaires Tax of 2012. It could be:
- "...because my daughter's class now has more than 40 students in it, with more coming each year. -Molly"
- "...to stop the endless tuition hikes my son, Ryan, has to pay at Fresno State."
- "...so my elderly neighbor, Mrs. Powell, won't lose the nurse who checks on her each day."
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"...to make sure Alameda County finally fixes the potholes on Ellsworth St.
-Miguel"
Whatever your personal reason, finish the sentence "We need to pass the Millionaires Tax of 2012...", write your message supporting on a plain sheet of paper. Then, take a photo of you, your family and friends, or the problem you want to fix, along with your message. Click here to submit!
An Invitation For VIP’s – You.
We are hosting a Millionaires Tax of 2012 ballot initiative strategy conference call Tuesday, February 28 at 6 p.m. PST with a group of VIP’s -- that means you!
We will share information about our latest internal polling and endorsements, answer questions on the ballot initiative, and take your questions/suggestions to help move our campaign forward. The call is not expected to last more than an hour and you can stay on for as long, or as little, as you like.
Are you with us? To RSVP, click here.
New Field Poll Proves Millionaires Tax has Strongest Support
The universally respected Field Poll, which has operated continuously as an independent, non-partisan pollster since 1947, has produced the fifth straight poll showing that the Millionaires Tax of 2012 has by far the strongest support from the people of California. The Millionaires Tax of 2012 has 63% support, with the Governor's measure trailing at 58%.
Of note is that the Field Poll tested language taken directly from the official Title and Summary which voters will see on the ballot in November. This clearly shows that voters, when given a choice, can assess each measure on its own merits -- often supporting more than one measure.
Mark DiCamillo of the Field Poll commented on this question in the San Francisco Chronicle:
DiCamillo said the placement of multiple tax initiatives trying to plug the budget hole might help convince the public that at least one is needed.
In 1988, voters were faced with five automobile insurance reform initiatives and backed only one - the one supported by repeat presidential candidate Ralph Nader, who at that time was best known for his consumer-protection activism.
"That shows it can be done," DiCamillo said.
Read the San Francisco Chronicle story here and see the full polling results here.
Rick Jacobs on Conan Nolan’s NBC4 Show “News Conference”
The Millionaires Tax has the best chance of passing, explained Rick Jacobs, chair and founder of the Courage Campaign to news anchor Conan Nolan on NBC4's "News Conference," Southern California's longest running political and public affairs interview program on Sunday morning.
The money that would be raised from the popular tax measure, up to $9.5 billion according to official estimates, would go directly toward the services Californians want to restore: education, public safety, elderly care, roads and bridges.
A Millionaire for the Millionaires Tax!
On Wednesday, four separate rallies were held in Fresno, Oakland, Los Angeles, and San Diego to launch the start of grassroots signature gathering for the Millionaires Tax and highlight the local benefits of the measure. At the event in Oakland, Frank Jernigan -- a software engineer who lived as a member of the 99% for the first 59 years of his life --spoke of his sudden transformation to the 1%. He was lucky enough to land a job at Google while it was still a start-up.
Hear his story and why he supports the Millionaires Tax by watching the video below.
Commuters Can’t Miss The Millionaires Tax of 2012!
Freeway blogging! This morning at 8 freeway overpass locations all over California volunteers held giant signs touting the Millionaires Tax of 2012. This included Richmond (seen below) through which hundreds of thousands of commuters pass on their way into San Francisco.
Media from all over the state, including ABC News, have covered the banners and the powerful message behind them: Our tax code needs to reflect the interests of middle-class Californians, not the special interests of corporate CEOs and their lobbyists. Now is the time to revamp our tax code here in California so it's fair to the 99% of us who play by the rules, not just the 1% who lobby hard and re-write the rules.
Banners were held for 2-3 hours in Los Angeles, Costa Mesa, Davis, Santa Cruz, San Diego, Oakland, Richmond, and San Diego. During the afternoon rush hour, a banner will fly in Fresno. All together, it's safe to say we've helped educate hundreds of thousands and perhaps millions about the Millionaires Tax of 2012. Not bad for a day's work! (A compilation of photos from around the state is available here.)
Independent poll shows Millionaires Tax at 70%
A recent, independent poll found the Millionaires Tax leads the pack of ballot initiatives with 70% of voters saying they'd vote for it. The results from the poll, published here at CalBuzz, reaffirm what our coalition’s polling has said all along –- our tax measure has the best chance of actually passing. The poll was conducted by FM3, a political consulting firm.
Millionaires Tax of 2012 garners nationwide media coverage
It's the video everyone's talking about: our video explaining how millionaires like Kim Kardashian pay just 1% more in taxes than a middle-class Californian making $47,000. From late December 2011 to January 2012, the video has been featured by over 400 media outlets worldwide, including:
CNN
ABC World News with Diane Sawyer
Associated Press
CBS News Moneywatch
Wall Street Journal
Los Angeles Times
CBS The Early Show
Fox News
The Huffington Post
Forbes
New York Magazine
PerezHilton.com
USA Today
San Francisco Chronicle
In addition, Courage Campaign's Rick Jacobs and Michael Bridges were interviewed on ABC World News and CNN, respectively, on the evening of Wednesday, January 4th. You can find those clips in the links above.
Join the growing movement to pass the Millionaires Tax of 2012 by signing up in the upper right corner!
Conservative political pundits lash out at Millionaires Tax ad starring Kim Kardashian
Pundits and editorial writers at The Wall Street Journal, Forbes, and other conservative media outlets are attacking an online viral video created to support the Millionaires Tax of 2012 and starring reality television star Kim Kardashian. The video (seen below) was created to educate the public about California's unfair tax system and reveals that Ms. Kardashian only pays one percentage point more in state income taxes than a middle-class Californian.
Conservative opinion makers have repeatedly cited right-wing tax myths, including here and here, claiming that an increase in state income taxes on millionaires will cause the wealthy to move to other states. This widely-held and factually inaccurate belief might be appropriate for another reality television show: Myth Busters. These pundits will only get more agitated when they read the multiple studies that show no correllation between millionaires taxes and migration, such as:
- Tax Flight Is a Myth: Higher State Taxes Bring More Revenue, Not More Migration by the Center on Budget and Policy Priorities,
- Millionaire Migration and State Taxation of Top Incomes: Evidence from a Natural Experiment a study by researchers from Stanford and Princeton,
- and The Number of High-Income Tax Earners Increased Significantly During a Period of 10% and 11% Tax Rates on High Income Earners by the California Budget Project.
The Restoring California Coalition would like to sincerely thank Ms. Kim Kardashian. She has brought unprecedented attention to California's unfair tax system and helped educate reality television fans about what can be done to start fixing California. Perhaps the right-wing's desperate attacks on the Millionaires Tax of 2012 are due to its remarkable popularity. It currently polls at 67% and will only need a simple majority to become law in November 2012.
The Basics of the Millionaires Tax
What is it? A statewide ballot measure that asks Californians who make over $1 million per year to pay a little bit more to invest in California after years of devastating cuts.
Why do we need it? Since 2008, budget cuts have led to big increases in K-12 class sizes, nearly a doubling of community and state college tuition, and billions in cuts to essential services for children and seniors.
What does it do? It asks those making more than $1 million a year in personal income to pay their fair share in taxes so we can raise an estimated $6 billion to begin:
- re-hiring laid off teachers to reduce class sizes,
- restoring college classes and student services,
- restoring cuts to essential services for children, seniors, and people who are disabled,
- re-hiring laid off emergency responders,
- and creating jobs by repairing roads and bridges.
Who's behind it? A coalition of educators, parents, and community groups working together to restore California's middle class.
If you'd like to read the official ballot measure language click here.
Click here to see how the Millionaires Tax of 2012 compares with other proposed tax initiatives.