WEBVTT 1 00:00:00.120 --> 00:00:03.720 In California's twenty twenty six mid term election, voters are 2 00:00:03.759 --> 00:00:06.799 going to be asked to vote on two ballot propositions 3 00:00:06.839 --> 00:00:13.119 to increase taxes, Propositions three and forty coming up. I'll 4 00:00:13.160 --> 00:00:16.199 give you an easy to understand explainer on what these 5 00:00:16.239 --> 00:00:20.120 propositions do and why you should vote no on both. 6 00:00:29.480 --> 00:00:32.280 I'm Carl Tomio, chairman of Reform California and a California 7 00:00:32.320 --> 00:00:35.159 state representative. And before we get on with an easy 8 00:00:35.159 --> 00:00:39.200 to understand explainer on Prop three and Prop forty, I 9 00:00:39.240 --> 00:00:41.920 want to invite you to get a full plain English 10 00:00:42.039 --> 00:00:45.520 voter guide from Reform California for every race, every measure 11 00:00:45.600 --> 00:00:48.600 on your ballot by going to the website election Guide 12 00:00:48.640 --> 00:00:53.119 California dot org. Election Guide California dot org. When you 13 00:00:53.200 --> 00:00:56.640 go there, type in your county and up will come 14 00:00:56.840 --> 00:01:00.759 a county specific voter guide for you to make voting 15 00:01:00.840 --> 00:01:05.200 simple and easy. We cover every one of the fourteen 16 00:01:05.719 --> 00:01:09.879 statewide ballot measures, but also all local measures on your ballot. 17 00:01:09.920 --> 00:01:14.799 And remember, the politicians are using biased, false and deceptive 18 00:01:15.000 --> 00:01:18.120 titles on these measures to hide tax increases and to 19 00:01:18.159 --> 00:01:20.799 try to manipulate your vote. So check out the plane 20 00:01:20.799 --> 00:01:23.560 English voter guide on the ballot measures to know what 21 00:01:23.560 --> 00:01:26.840 you're voting on. Secondly, a lot of voters are frustrated 22 00:01:26.840 --> 00:01:29.879 because they don't have a lot of information on candidates 23 00:01:29.879 --> 00:01:34.480 on their ballot for judge, school board, water district, fire board, 24 00:01:34.599 --> 00:01:39.159 city council. We evaluate all candidates for all offices on 25 00:01:39.200 --> 00:01:43.359 your ballot, and we only endorse the reform minded, common 26 00:01:43.439 --> 00:01:46.879 sense tax fighting candidates in your area. Lord knows we 27 00:01:46.920 --> 00:01:51.079 have enough tax raising far left lunatics running for office 28 00:01:51.120 --> 00:01:54.519 and in office in California. We don't need more. So 29 00:01:54.760 --> 00:01:58.439 please check out election Guide California dot org to get 30 00:01:58.519 --> 00:02:02.959 your local plane in which voter guide from Reform California. Okay. 31 00:02:03.000 --> 00:02:09.039 Prop thirty and Prop forty are two statewide tax increase measures. 32 00:02:09.759 --> 00:02:13.199 Mind you, there are other tax increases locally on your ballot, 33 00:02:13.439 --> 00:02:15.639 which is why you should check out your local voter 34 00:02:15.719 --> 00:02:20.319 guide that we provide. But Proposition three would impose a 35 00:02:20.439 --> 00:02:27.800 massive income tax increase in California. Proposition forty is a 36 00:02:28.280 --> 00:02:35.120 wealth or savings tax, brand new form of taxation. I'm 37 00:02:35.120 --> 00:02:38.199 going to cover both of these, So Prop three is 38 00:02:38.240 --> 00:02:42.159 an income tax increase. It would make permanent the highest 39 00:02:42.240 --> 00:02:46.560 in the nation income tax rates that California adopted about 40 00:02:46.560 --> 00:02:50.680 a decade ago. We used to have a nine point 41 00:02:50.680 --> 00:02:54.360 three percent highest rate for state income tax. That's already 42 00:02:54.360 --> 00:02:57.360 one of the highest rates in the nation. Prop three 43 00:02:58.360 --> 00:03:03.360 would make permanent the income tax hikes. It would go 44 00:03:03.400 --> 00:03:06.719 to ten point three percent to twelve point three percent 45 00:03:07.520 --> 00:03:12.280 of everything you're earning. It would impact high income individuals. 46 00:03:12.360 --> 00:03:14.520 To find us three hundred and seventy thousand dollars for 47 00:03:14.560 --> 00:03:17.439 a single filer or seven hundred and forty three thousand 48 00:03:17.479 --> 00:03:20.280 dollars for a joint filer. Now you might say, well, yeah, 49 00:03:20.400 --> 00:03:24.080 let's tax the ridge. In a moment, I'll explain the 50 00:03:24.080 --> 00:03:26.919 economic realities of why that actually gives us less money 51 00:03:26.960 --> 00:03:31.400 in California. The second measure is not an income tax. 52 00:03:31.479 --> 00:03:36.000 It is a savings tax or a wealth tax. Now 53 00:03:36.080 --> 00:03:39.120 they're saying that Prop. Forty is a billionaire's tax. It 54 00:03:39.120 --> 00:03:43.240 would implement a wealth tax on billionaires. But no, it's 55 00:03:43.319 --> 00:03:48.240 actually in everybody tax. It applies to all taxpayers. It 56 00:03:48.360 --> 00:03:51.840 says in Prop forty that the legislature, by a vote 57 00:03:51.879 --> 00:03:54.560 of the legislature, not a vote of the people, still 58 00:03:54.599 --> 00:03:58.319 would have the ability to impose the wealth tax or 59 00:03:58.360 --> 00:04:02.639 the savings tax on all all taxpayers. And let me 60 00:04:02.680 --> 00:04:06.319 tell you, as soon as you give politicians a wealth 61 00:04:06.400 --> 00:04:11.639 tax for the uber rich, they're coming for you. Now, 62 00:04:11.680 --> 00:04:14.240 what is a savings tax or a wealth tax? And 63 00:04:14.240 --> 00:04:16.120 you know what an income tax is, It's the money 64 00:04:16.120 --> 00:04:19.560 that you earn each year, a savings tax, A sales 65 00:04:19.600 --> 00:04:23.399 tax is what you spend each year, each purchase, a 66 00:04:23.439 --> 00:04:26.160 gas tax of car taxes on those items, a property 67 00:04:26.199 --> 00:04:29.600 taxes the value of your property. So all of these 68 00:04:29.639 --> 00:04:33.920 forms of taxation you're already paying. If you're able somehow 69 00:04:33.959 --> 00:04:35.680 to scrimp and save and put a little money in 70 00:04:35.720 --> 00:04:38.160 your savings account or your four to oh one K 71 00:04:38.560 --> 00:04:44.240 or your stock portfolio, or if your home builds up equity. 72 00:04:44.920 --> 00:04:48.439 The savings tax or the wealth tax would require that 73 00:04:48.519 --> 00:04:51.600 at the end of each year you have a snapshot 74 00:04:51.680 --> 00:04:57.000 of your value, your savings, your equity, your stockholdings, your 75 00:04:57.040 --> 00:05:00.160 retirement portfolio, and you'd have to pay a lump some 76 00:05:00.680 --> 00:05:04.279 off the top tax on all of that. This is 77 00:05:04.360 --> 00:05:07.759 devastating because many people have equity in their home but 78 00:05:07.759 --> 00:05:10.680 they have no cash in their account. But guess what 79 00:05:12.079 --> 00:05:14.040 the government would say, Well, you're sitting on one hundred 80 00:05:14.040 --> 00:05:16.959 thousand dollars of equity. You owe five grand a year 81 00:05:17.079 --> 00:05:19.240 for that, and the taxpayer would say I don't have 82 00:05:19.240 --> 00:05:22.040 that money. They'd say, fine, sell your home. Well, now 83 00:05:22.040 --> 00:05:24.759 they like that because that means that when you sell 84 00:05:24.800 --> 00:05:27.439 your home, the assessed value to the next buyer is 85 00:05:27.480 --> 00:05:30.439 increased as well. You understand that these people are absolutely 86 00:05:30.680 --> 00:05:35.839 vultures picking at the carcass of California taxpayers. That's what 87 00:05:36.240 --> 00:05:38.800 this Prop forty would do. Now. I know some of 88 00:05:38.839 --> 00:05:41.199 you are probably saying, well, which just going to apply 89 00:05:41.240 --> 00:05:44.560 to the rich? Why not do it? They're coming for you. 90 00:05:45.680 --> 00:05:50.560 But it also has a negative impact on our state 91 00:05:50.600 --> 00:05:56.959 budget because the wealthy individuals are leaving the state. Here's 92 00:05:57.000 --> 00:06:00.759 Fox News just from this summer, billions in taxpayer income 93 00:06:00.800 --> 00:06:05.439 are leaving two iconic states, California and New York. This 94 00:06:05.480 --> 00:06:09.759 is all according to IRS data. The IRS knows about 95 00:06:10.160 --> 00:06:13.399 tax filings in it says top ten counties with the 96 00:06:13.480 --> 00:06:16.439 largest net losses of taxpayers other states are all located 97 00:06:16.439 --> 00:06:21.360 in California and New York. What happens when a high 98 00:06:22.199 --> 00:06:26.360 income earner leaves the state, instead of paying a little 99 00:06:26.360 --> 00:06:30.279 bit more in taxes with the higher Prop three or 100 00:06:30.319 --> 00:06:33.480 Prop forty tax rates, they take one hundred percent of 101 00:06:33.480 --> 00:06:35.920 their tax increment to another state, and that state gets 102 00:06:35.920 --> 00:06:40.959 the revenue. We get zero. Take a look at this 103 00:06:41.120 --> 00:06:45.720 from the Center for Jobs. This is IRS data high 104 00:06:45.720 --> 00:06:52.959 earner migration from California. These are high earners people leaving 105 00:06:53.160 --> 00:07:01.920 the state of California, moving two almost none. We are 106 00:07:01.920 --> 00:07:06.639 constantly losing more and more high earners. California already has 107 00:07:07.000 --> 00:07:11.079 about forty to forty five percent of the nation's welfare recipients. 108 00:07:11.160 --> 00:07:14.000 We only have twelve percent of the population and that's dwindling. 109 00:07:15.360 --> 00:07:17.680 So we have a lot of people on government assistance 110 00:07:18.199 --> 00:07:21.720 not paying into the system, while the people paying into 111 00:07:21.759 --> 00:07:24.600 the system are packing up and leaving. We pass Prop 112 00:07:24.600 --> 00:07:27.879 three and forty, it's going to continue. It actually doesn't 113 00:07:27.920 --> 00:07:31.000 raise revenue for our state. It will cost us revenue, 114 00:07:31.480 --> 00:07:34.759 and with those high net owners leaving the state, more 115 00:07:34.800 --> 00:07:37.240 burdens will be on taxpayers in the middle class. Your 116 00:07:37.360 --> 00:07:40.800 tax rates will go up, your services will be cut, 117 00:07:42.120 --> 00:07:44.920 and our job base will dry up. That's why we 118 00:07:45.040 --> 00:07:47.879 urge a no vote on Prop three, Prop three and 119 00:07:48.000 --> 00:07:50.720 Prop forty and all tax increases on your ballot for 120 00:07:50.759 --> 00:07:53.959 that matter. Spread the word on what Prop three and 121 00:07:54.000 --> 00:07:57.480 forty actually are doing by liking this video sharing it 122 00:07:57.480 --> 00:08:02.040 with your friends. Also share the voter guide with all 123 00:08:02.160 --> 00:08:05.399 of your contacts at election guide California dot org. Election 124 00:08:05.480 --> 00:08:08.279 guide California dot org. Thanks for watching and I hope 125 00:08:08.319 --> 00:08:11.759 you enjoyed this episode. But before you click away, please 126 00:08:11.839 --> 00:08:14.959 subscribe to this channel and click that notification button so 127 00:08:15.040 --> 00:08:18.600 you get updated when we post new episodes. Plus, like 128 00:08:18.680 --> 00:08:20.800 this video and share it with your friends so that 129 00:08:20.839 --> 00:08:23.079 we can help spread our message across the state.