As Californians face more tax increases, a new ballot measure that would allow residents to have a say in the process is being challenged by government leaders in a petition to the state Supreme Court.
The Taxpayer Protection and Government Accountability Act (TPA), which is supported by a wide coalition of business and consumer groups, describes Californians as overtaxed: “We pay the nation's highest state income tax, sales tax, and gasoline tax. According to the U.S. Census Bureau, California's combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $234 billion in new and higher taxes and fees.”
The initiative has already collected enough signatures that it qualified for the November 2024 ballot.
Robert Rivinius
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But it could be thwarted by a petition filed last month by Gov. Gavin Newsom and John Burton, a longtime San Francisco legislator and former chair of the California Democratic Party. It asks the state Supreme Court to block the measure from appearing on the ballot, arguing that it would revise the California Constitution rather than amend it.
The roadblock is unfortunate, but not surprising, said Robert Rivinius, executive director of the Family Business Association of California.
“The government loves the ability to raise taxes without real scrutiny about it, and the Taxpayer Protection Act would let the voters decide whether they want to tax or not,” Rivinius said. “Taxes never seem to go down, they just keep going up, and the folks that are behind the initiative, including us, feel that if people had a chance to say they wanted the tax or not, it would be a very good check and balance on the Legislature, and the governor, who again, like raising taxes.”
The initiative also describes that the taxes and fees driving California's high cost of living also contribute to its place as first in the nation for poverty and homelessness, while pushing working families, jobs, and businesses out of state. New figures from the U.S. Census American Community Survey show that 817,000 people left California in 2022. Other data shows that in 2021, the departures of high earners cost the state $340 million in tax revenue.
The government’s petition states the Taxpayer Protection Act would be too drastic a change to government functions: “The history of the initiative process demonstrates that it was not meant to interfere with a legislative body’s overall ability to manage the government’s fiscal affairs.”
TPA opponents also want a separate constitutional amendment to increase the number of votes it needs in order to pass.
TPA supporters argue the initiative will close loopholes that have winnowed the effect of other taxpayer protection measures, including Proposition 13 (1978), Proposition 62 (1986), Proposition 218 (1996), and Proposition 26 (2010).
“It’s an opportunity for the people who are actually paying the bills to weigh in,” Rivinius said. “The Governor and Legislature spend money, but it's not their money – it's the taxpayers’ money.”