California voters will consider Proposition 3 in November 2026. The measure would make permanent higher personal income-tax rates first approved in 2012 and currently scheduled to expire in 2031. The affected thresholds begin at roughly $371,000 for single filers and $742,000 for joint filers at 2025 income levels and adjust for inflation. The Legislative Analyst estimates that making the rates permanent would maintain roughly $5 billion to $15 billion in annual state revenue, with substantial year-to-year variation because high-income tax receipts are volatile. The resulting revenue supports education and the broader General Fund. Proposition 3 is not about whether to raise these rates tomorrow; taxpayers already pay them. The long-term choice is whether a temporary high-income tax should become permanent, expire on schedule, or be replaced with another structure once 2031 arrives.
What should California do when its current higher income-tax rates on high earners reach their scheduled expiration?