Golden State Voters Reject Tax Increase
June 7, 2006
This morning, Reuters reports that California’s Proposition 82 was defeated in yesterday’s statewide election.
“California voters appeared to have rejected ballot measures to authorize the state to sell $600 million in bonds for libraries and raise taxes to fund free preschool for 4-year-old children, according to election results early on Wednesday.
With 43.9 percent of precincts reporting, 53.4 percent of votes had been cast against Proposition 81 and 46.6 percent of votes had been cast in favor of the measure, which proposed the general obligation debt sale to finance building and renovating libraries.
The state’s Legislative Analyst’s Office had estimated it would have cost California $1.2 billion from its general fund over 30 years to pay off the $600 million in principal and $570 million in interest expenses from the debt.” [Full Story]
Tax Foundation President Scott Hodge recently published a commentary on California’s Proposition 82 in the Orange County Register, pointing out some of the problems currently faced by California’s tax system—many of which would have been exacerbated by the bill.
To read more about California’s tax system, click here.
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