In this process of dissecting proposition 30 and evaluating its pros …show more content…
This will lead to more borrowing, creating more debt. Say that these people do not move from California this prop will bring in a substantial amount of revenue, potentially increasing educational funds. However it is not a question any more if these people will start leaving now it’s about the rate at which they are leaving. Recently Chris Plastiras, the owner of a real estate company in Nevada, since Proposition 30 passed, 14 of the 27 high-end homes he sold between the election and the end of January 2013 were to wealthy individuals leaving California for Nevada. He said, "They're buying fast and furious, absolutely. I've never seen anything quite like this. Prop. 30 really got a lot of people upset and they feel like they're being singled out, and that was pretty much the straw that broke the camel's back for them."
The tax rates would be in effect for seven years starting in the 2012 tax year and ending at the conclusion of the 2018 tax year. Because the rate increase would apply as of January 1, 2012, affected tax payers likely would have to make larger payments in coming months to account for full- year effect of the rate increase. (CalTax, 3)
Revenues could change significantly from year to year. The revenues raised by this measure could be subject to multibillion-dollar swings. This is because the vast majority of the additional revenue from this