Proposition Summary

INCOME TAX INDEXING. INITIATIVE STATUTE. Graduated state personal income tax brackets are adjusted annually by applying an "inflation adjustment factor" determined by use of the percent that the California Consumer Price Index has changed. This is referred to as "indexing," Under existing statutes, the full percentage change in the Index is being used for 1980 and 1981 taxable years. Beginning in 1982 and for later taxable years the Index percentage changes which exceed 3 percent will be used. This measure changes existing statutes by providing for the continued use during 1982 and taxable years thereafter of the full percentage Index changes. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Reduce state personal income tax revenues by about $230 million in 1982-83, by about $445 million in 1983-84, and by increasing amounts thereafter. Under existing law reductions in state revenue would result in corresponding reductions in amount of fiscal relief provided by state to local governments and schools.

Proposition Number

7

Year

1982

Document Type

Proposition

Pass/Fail

Pass

Popular Vote Results

Y: 3191178; A: 63.5; N: 1835054; B: 36.5

Election Type

Primary

Proposition Type

Initiative statutory

Relevant Case

Rossi v. Brown: 9 Cal. 4th 688, 1995; Wilson v. Superior Ct. of Los Angeles County: 134 Cal. App. 3d 173, 1982

Code Sections Affected

Amended Cal. Rev. & Tax. Code section 17041

For Author

Howard Jarvis, Chairman, Index the Income Tax Committee; Mike Curb, Lieutenant Governor; Paul Carpenter, State Senator, 37th District

Against Author

Howard L. Berman, Member of the Assembly, 43rd District; John M. Bachar, Professor of Mathematics California State University, Long Beach; Kent A. Spieller, Chairman, Californians for a Fair Index

Rebuttal Author

Kent A. Spieller, Chairman, Californians for a Fair Index; John M. Bachar, Professor of Mathematics California State University, Long Beach; Peter L. Coye, Member, California Tax Reform Association

Rebuttal Against Author

Howard Jarvis, Chairman, Index the Income Tax Committee; Mike Curb, Lieutenant Governor; Paul Carpenter, State Senator, 37th District

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