The 3rd Tax on the Ballot

Most of the media attention with regard to tax initiatives on the November ballot has gone to Prop 30 (the governor’s tax) and Prop 38 (the Molly Munger tax) and their rivalry.

However, also on the ballot is Prop 39 which is generally described as closing a corporate tax loophole that favors out-of-state firms.  It has polled well and there doesn’t seem to be an organized opposition campaign against it.  Prop 39 is said to involve about a billion dollars in potential revenue.  However, it has been criticized in some newspaper editorials as ballot-box budgeting because it earmarks about half of what it raises for green energy projects.  Part of the reason for lack of an organized anti-39 campaign is that the in-state business community doesn’t favor having the tax code give advantages to out-of-state competitors.  And it does put some revenue into the general fund, despite the earmark.

Readers of this blog may recall that the legislature considered, but ultimately did not pass, a change in the law that would have closed the same loophole but earmarked the money for tuition reductions.

There is a pro-39 campaign funded by a wealthy individual, Tom Steyer [http://www.forbes.com/profile/thomas-steyer/].  A TV ad in favor of Prop 39 is at:
[youtube http://www.youtube.com/watch?v=0MjMAZFtZbw?feature=player_embedded]