The California Chamber of Commerce announced Monday that it is opposing a likely November ballot measure to extend the income tax increase of Proposition 30 until 2031.

Proposition 30, supported by Gov. Jerry Brown and approved by voters in 2012 and was temporary and set to expire at the end of 2018. The proposition increased income taxes for individuals earning more than $250,000 a year and families earning more than $500,000.

A coalition of unions, school groups, doctors and hospitals has said it has gathered more than enough signatures to qualify an extension of this income tax increase for the November ballot; they all claim their programs would lose funds if the temporary tax increase expires as scheduled.

The coalition chose not to extend the quarter cent sales tax increase that was also in Proposition 30 that is set to expire at the end of this year.

After extensive lobbying by Brown, the chamber’s board stayed neutral on Proposition 30. This time the board said the extension amounts to a permanent tax increase.

“CalChamber did not oppose the original Proposition 30 tax increase because the measure was supposed to be temporary and the state was in the midst of a dire financial situation,” the chamber’s statement said. “An extension of Proposition 30 would make the tax virtually permanent, even when the state’s budget is balanced.”

The chamber board also voted to oppose another proposed initiative aiming for the November ballot that would impose a cap on total annual compensation paid to private nonprofit and for-profit hospital executives at the level of compensation received by the President of the United States – currently, $450,000. The board noted that with California’s high cost of living, the measure would put California hospitals at a competitive disadvantage in recruiting top-level executives.

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