Gubernatorial recall candidate Kevin Faulconer on Wednesday proposed what he called the largest middle-class tax cut in California history.
Faulconer’s plan would keep the state’s top rate of 13.3% on incomes in the millions of dollars, but cut the rate to zero for the first $50,000 earned by individuals, and the first $100,000 earned by families. It would also eliminate taxes on military retirement income.
“Under my plan 99% of taxpaying households will qualify for relief, many middle-class families will see their state income taxes reduced to zero, and we will make it rational to retire here,” the former Mayor of San Diego said at a press conference in Los Angeles. “This is not a tax cut for the Wall Street crowd — it’s a tax cut for the people who make our state work and deserve change in this election.”
The plan could save singles nearly $2,000 and families nearly $4,000 a year in taxes, depending on their deductions and filing status. Faulconer explained that a married couple earning a combined $110,000 in annual income would owe no state taxes on the first $100,000 they earn.
The plan was praised by Lee E. Ohanian, UCLA Professor of Economics and Hoover Institution Senior Fellow, who appeared with Faulconer at the press conference.
“Mayor Faulconer’s responsible tax reform plan will help restore the California Dream that is now out of reach for so many California families,” said Ohanian. “The plan provides immediate and significant help to so many Californians who are mightily struggling to afford the high cost of living.”
“California’s record-setting surplus makes this the perfect opportunity to enact meaningful tax reform that supports California families by allowing them to keep more of their hard-earned income,” he added.