Wednesday, November 20, 2019
Implementation and Analysis Proposition 30 ( increase tax for Essay
Implementation and Analysis Proposition 30 ( increase tax for education ) - Essay Example The policy affects the upper income tax payers because they are the one to pay additional tax for the funding of the stateââ¬â¢s budgeted programs. However, the beneficiaries of the policy range from community colleges and schools, universities, department of development services, department of parks and recreation, department of fish and game, city police departments among other funded educational programs (Williams, 2011). The Proposition 30 will increase the rate of Sales Tax from 2013 all the way to 2016 by 9.3%. This policy measure will increase statewide rate of sales tax by almost one quarter for each dollar of purchased goods. The policy will be effective for four years. The Proposition 30 will also increase the rates of Personal Income Tax from 2012 to 2018. The policy measure will increase the already existing 9.3 percent rates on the higher incomes. The supplementary marginal rate of tax will increase with the increase in taxable income. The policy will add state revenue from 2018 through to 2019. Through the fiscal years in which both the personal income tax and sales tax increases as stated above due to phasing in and phasing out of the higher rates of taxes, the smaller increases in revenue are likely to be seen in 2011/2012, 2017/2018, and 2018/2019 (Jeffrey And Aaron, 1984). The revenue could also be seen changing from year to year significantly. This would be so through multibillion dollar swing either below or above the projected revenues. This could be because the majority of extra revenue would result from the increase on rates of personal income tax on the upper income taxpayers. Additionally, the bigger part of the reported income by the upper income taxpayers is associated with their businesses and investments, rather than their salaries and wages. The policy as mentioned before will also benefit schools, because the new tax revenues
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment