The June top-two primary election is shaping up to be more interesting than usual, as Californians wrestle with an open gubernatorial race and a variety of post-gerrymandering congressional races that could determine which party controls the House of Representatives. But if you think June is fascinating, just wait until November.
In the general election, voters will be considering a raft of statewide initiatives that are unquestionably among the most significant ones in years. Even more than with their candidate choices, voters will determine if California will continue down its current policy path of taxing, regulating and spending — or whether the state is ready to chart a different course by embracing deregulation and tax limits.
The measure that’s received the most attention is the billionaire’s tax. Supporters have submitted enough signatures to qualify for the ballot but the measure is still in the process of certification by the California Secretary of State next month. It would impose a “5% tax on the accumulated wealth … of billionaires” to fund health, food assistance and education programs.
We’re already seeing its impact, as some billionaires have been leaving California. The measure applies retroactively, which will trigger a legal challenge if passed. But even if the wealthy can’t evade the state’s taxing agencies, its passage would send the wrong message to wealth creators. The top 1% of California earners already pay almost 45% of its income taxes. Even Gov. Gavin Newsom strongly opposes this initiative.
Voters also will consider two initiatives that would improve the state’s tax and regulatory climate. The first, which likewise is awaiting official certification, is the brainchild of the Howard Jarvis Taxpayers Association. Dubbed the “Local Taxpayer Protection Act,” it raises the voter-approval threshold for local special taxes from a simple majority to a two-thirds majority — and prohibits and repeals excessive transfer taxes such as Los Angeles’ Measure ULA.
That “mansion tax” has eviscerated apartment construction as it applies to many types of properties and not just mansions. Approving the state ballot measure would not only protect taxpayers from tax-hungry local officials, but it would stop cities from destroying their housing markets by imposing punitive taxes on new apartment and condominium construction.
The second encouraging measure, advanced by the state’s business community, would force the state to embrace comprehensive reform of the California Environmental Quality Act (CEQA), rather than just piecemeal exemptions. This 1970 measure has become an obstacle to the construction of housing, parks and transit projects, thus undermining the state’s environmental and affordability goals by subjecting virtually every project to a lengthy approval process. It also triggers costly lawsuits. The Secretary of State is still counting signatures.
The final high-profile initiative, which is awaiting final certification, would create a statewide Voter ID system. We’re agnostic on this one. California does a good job verifying its voter rolls, but there’s no harm in requiring an ID provided the requirements don’t create excessive hurdles for those who may not have a driver’s license. The details are fine, but it is mainly an effort to drive Republican turnout in the general election.
These are the biggies so far, although the ballot likely will be filled with a host of other significant questions. Stay tuned, as these initiatives will say much about which direction California is headed.