History Lesson for Proposed California Tax Hikes
Democratic campaign strategist Garry South knows elections, and all the proposed tax hike initiatives headed for the ballot remind him of 1996:
In 1991, Gov. Pete Wilson and the Democratic Legislature installed two additional state tax brackets for “the wealthy,” 10 percent for those making from $115,000-229,999 per year, and a top rate of 11 percent for those making more than $230,000. But these tax hikes had a sunset provision and expired in 1995. The next year, a primarily labor-funded effort put a measure on the ballot to re-instate these higher tax brackets, Proposition 217.
Bear in mind that 1996, just like 2012, was a presidential election year, when the turnout of Democrats and minorities almost always spikes. In addition, there was a sitting Democratic president of the United States, popular in California, who was running for reelection. It also would have allocated most of the revenues to the ever-popular education. And Prop. 217 was on the November general election ballot, not the primary ballot or a special-election ballot. Does this not sound like a very close cousin to the electoral circumstances in 2012?
But although Bill Clinton beat Bob Dole that year by 13 percent in California, Prop. 217 went down to defeat (albeit barely, 49.2 percent to 50.8). According to the Los Angeles Times exit poll, Democrats constituted 45 percent of the turnout in the ’96 general election, and self-described liberals and moderates comprised 68 percent of the voters. Also, voters earning less than $75,000 a year were 74 percent of the turnout – and hence would not even have been affected by the higher tax rates. So much for the 99 percent taxing the 1 percent.
Raising income taxes on other people has been a time-honored American tradition since 1913. Somehow, everyone’s tax bill keeps rising. How can that be?
Thursday, December 15th, 2011
The National Education Association held a 