California court upholds Prop 63 tax on wealthy
LOS ANGELES, California: On October 14, the Second District Court of Appeal in Los Angeles upheld a trial court ruling against the plaintiffs in Jensen v. California Franchise Tax Board. Plaintiffs Craig and Sally Jensen had challenged the wealth tax imposed in 2004 via Proposition 63, suggesting that it violated the equal protection clause of the federal and state constitutions.
Proposition 63 imposes an additional 1% tax on annual incomes over $1 million.
The three-judge appellate panel wrote that the Jensens "are mistaken in thinking that taxpayers in a particular tax bracket cannot be singled out for an income tax to benefit society at large."
Tennessee law professor Glenn Reynolds said that the decision is good news for Nevada and Arizona, to the extent that these states are seeking to attract the immigration of wealthy individuals from California.
|Propositions •||Recall||• Law|
- Text of Jensen v. California Franchise Tax Board
- Laws governing the initiative process in California