That's not my headline, it's from BusinessWeek:
Congress, five million Californians may have a message for
you: Don’t be afraid of raising taxes to rescue the budget. In Tuesday’s
election,
54 percent
of California voters approved Proposition 30, a $6 billion tax hike
that staves off dire spending cuts. If the measure had failed, trigger
reductions would have forced schools and community colleges to trim
their budgets by $5.3 billion and made the state’s colleges and
universities cut $500 million. Governor Jerry Brown staked his legacy on
Prop. 30, betting that when consequences are clear, people are willing
to pay.
Because of the automatic cuts that would have occurred,
“this is the California equivalent of sequestration at the national
level,” John Ellwood, a state budget expert at University of California,
Berkeley, told me last month. Sequestration—aka the fiscal cliff—will
trigger $600 billion in U.S. tax hikes and spending cuts in 2013 if
Congress can’t reach a debt deal. Republicans have been rejecting any
tax increases, while some Democrats oppose reforming entitlements.
California’s case can provide an example that after lots of spending
cuts, which California has embraced over the past few years, voters may
be willing to fork over more money to keep government services running.
“You can’t simply get more efficient” and trim spending more, Ellwood
said; at some point, additional taxes must be on the table.
Prop. 30′s passage wasn’t a sure thing. As we reported
two weeks ago, the measure had been polling in the mid-to-high 50
percent range for many months. But as the election neared, Prop. 30 was
squeezed on both the right and the left by a nearly $90 million threat
from a pair of wealthy siblings whose father, Charlie Munger, has been
vice chairman of Warren Buffett’s Berkshire Hathaway (BRK/A) for 30-plus years. Charles Munger Jr. gave $45 million to a pro-business political action committee that opposed Prop. 30, according to data compiled by the Los Angeles Times. His half-sister, Molly Munger, fronted $44 million to bankroll her own competing tax hike-for-education proposition, according to Times
data. Molly Munger’s proposition would have raised a greater sum from
taxes over a longer period of time, but when her campaign turned
negative, it created confusion among voters. (In California, people can
vote in favor of competing propositions; if both pass, whichever has
more votes is declared the winner.)
Brown stepped up his stumping efforts for the measure, but in the week before the election, the statewide Field Poll showed
(PDF) that just 48 percent of likely voters supported it. Typically in
the state, a measure with less than majority support in the polls will
be voted down by voters. In the end, Brown’s measure got enough votes to
prevail, and 72 percent of voters rejected Munger’s initiative.
That
means Californians have agreed to pay a 0.25 percentage-point increase
in the sales tax for four years and have undertaken to hike income taxes
on those with more than $250,000 in yearly income (those over $500,000
take a 3 percent increase) for seven years....MORE
Reading down to that last paragraph shows that both the headline and the lead sentence were incorrect or deceptive. The attitude of the California voters is that identified by Senator Russell Long (D-La):
"Don't tax you, don't tax me, tax that fellow behind the tree!