A schism has emerged within the California Democratic Party over a tax on wealthy residents that would funnel billions of dollars into greenhouse gas reduction mechanisms.
Proposition 30, which will be on the November ballot, has the support of the state’s Democratic party, seven Democratic state senators and 16 Democratic assembly members. His main opposition so far has come from the state’s Republican party and the Howard Jarvis Taxpayers Association, a group dedicated to stopping state tax increases.
But now Prop 30 has a new enemy: the Governor.
Governor Gavin Newsom and the California Teachers’ Association jointly announced their opposition over the weekend. Newsom called the accessory a “special interest detachment” developed by a company for its own benefit. He is referring to Lyft, the ride-sharing company that has invested more than $8 million in contributions and loans in the campaign, according to documents filed in July by Clean Air California, a committee supporting the proposal.
“California’s tax revenues are notoriously volatile, and this move would make our state’s finances more unstable — all for special interests to benefit,” the governor said. “Support. 30 is fiscally irresponsible and puts the profits of a single company ahead of the welfare of the entire state.
The proposal would impose a 1.75% income tax on Californians who earn more than $2 million a year. Revenue would go to subsidies and infrastructure for zero-emission vehicles, as well as forest fire prevention.
Proponents of the measure pushed back on Monday. In a statement, Yes on 30 said climate change is “devastating California” and the recent failure of federal climate legislation increases the urgency for action at the state level.
“The Yes on 30 campaign is disappointed that Governor Newsom is siding with the Republican Party of California and billionaires in opposing a measure to fight climate change and reduce wildfires,” he said. he declares.
The CTA said Proposition 30 forces taxpayers to pay instead of big business.
“Support. Narrowly-targeted 1930s tax hike puts a special interest lock on income taxes that would traditionally fund transitional kindergarten, public schools, community colleges, health care, security and other priorities,” added CTA President E. Toby Boyd.
Although it receives no direct subsidies, Lyft has several reasons for pouring millions into the initiative. On the one hand, it would offer discounts to drivers who buy electric cars, making such a purchase more profitable and in the best interest of the company. Also looming are Lyft and Uber: companies must ensure that 90% of the kilometers traveled by its drivers are done in electric vehicles by 2030. Proposition 30 could help achieve this goal more quickly.
Lyft did not respond to a request for comment Monday afternoon.
Governor Newsom has yet to weigh in on most initiatives. He has parted ways with Democrats several times recently: In the process of budget negotiations, the governor has been at odds with House Democrats for weeks over how best to provide Californians with inflation relief. He also took recent events, including the mass shootings and the Supreme Court’s overturning of Roe v. Wade, as an opportunity to argue that many Democrats are not doing enough to address the issues facing the country.
This story was originally published July 25, 2022 5:17 p.m.