Vote YES on Prop 42 to protect your retirement.
$10,000
Annual Middle-Class Retirement Tax
A typical middle-class worker could face new tax bills of up to $10,000 for person nearing retirement.
7 Years
Retirement Delayed
A retirement tax could force a person to work up to 7 extra years to get back to the retirement income they planned on.
Right now, your retirement and life savings are not protected from new taxes. But recent legislative proposals attempted to tax retirement accounts by as much as 1.5%. What would new retirement taxes mean to you?
A recent economic analysis of the impact of a 1% annual tax on retirement account balances showed how damaging this kind of tax could be for average Californians.
Near retirement, a 1 percent tax could amount to thousands of dollars per year, on top of the state income taxes retirees already pay when they withdraw funds from their 401ks.
By reducing the amount that can be invested and compounded each year, a 1% tax significantly lowers the total value of a worker’s retirement savings. Workers lose both long-term growth and the tax-deferred benefits of saving, creating a significant lifetime tax on their retirement.
Building Trades Worker
Retirement Income Loss
Lifetime Cost of Tax
Clerical / Administrative
Retirement Income Loss
Lifetime Cost of Tax
Business Analyst
Retirement Income Loss
Lifetime Cost of Tax
Engineer
Retirement Income Loss
Lifetime Cost of Tax
The analysis assumes the tax applies through each individual’s working lifetime, with their careers starting in their low to mid 20s and ending in the low to mid 60s.
Vote Yes on Prop 42 to Protect It.