Integral to any policy discussion is a fully funded public sector, including schools and universities that are particularly well-poised to address everything from the achievement gap to unconscious bias throughout the state.
The governor and Legislature are banking on the federal government to come to the rescue; in May, the House of Representatives passed the Heroes Act that earmarks $1 trillion for the states, which would help fill California’s projected $54 billion budget deficit, enabling us to maintain schools, health care, transportation and other vital public services.
Specifically, our state leaders have the power to increase taxes on the states’ corporations and millionaires and billionaires, which would avoid cuts altogether.
Another option would be to impose a 1% tax on the wealth – for instance, on dividends and stock transfers – of millionaires and a 1.5% tax on the wealth of billionaires, which would generate $18 billion annually.
A third option would be to close corporate loopholes and enact an “excess” profits tax on corporations that are raking in more money than usual during the pandemic, largely due to how the lockdown has increased the value of their services, as is the case especially for tech companies.
