California’s income tax system, including eliminating state income taxes on salaries up to $150,000. Hilton unveiled the revised plan Tuesday, expanding on an earlier proposal that would have exempted only the first $100,000 of annual income from taxation.
Under the new proposal, income earned above $150,000 would be subject to a flat tax rate of 8 percent. Hilton argues the change would provide significant tax relief for middle-class Californians while simplifying the state’s tax structure.
To offset the substantial loss of tax revenue, Hilton says California would need to implement deep spending cuts across state government. The proposal is expected to face significant political challenges, particularly in the Democrat-controlled Legislature. State lawmakers this week approved a record $355 billion budget, highlighting the contrast between Hilton’s call for major budget reductions and current state spending priorities.
