Class 3 - Millionaires Tax

Question 1

california proposition 10

Answer 1

Did not pass
In favor: Corporations
Against: Newsom and Teachers
2035 all cars must be EV

Discussion:
What did Prop 30 propose to do?
Taxing individuals who make more than 2 million
Increase tax rate 13.5 to 15.5

Under Prop 30, how would the increased tax revenue be used?
Electric vehicle infrastructure and climate change efforts (air pollution)

Did Prop 30 pass? What happened?
No (57%)
Huge campaign on both sides

How was Lyft involved in this?
Lobbying in favor of it
Lyft wanted fleet of cars to be EV so they wouldn’t be contributing to air pollution

Do you support Prop 30? Why?
Not California’s initiative for it, but maybe Massachusetts

Question 2

rawls principle of justice (2 principles)

Answer 2

1. “The first requires equality in the assignment of basic rights and duties.”
2. “Social and economic inequalities are to be arranged so that they are both (a) attached to offices and positions open to all under conditions of fair equality of opportunity and (b) to the greatest benefit of the least advantaged.”

Question 3

apply rawls to california prop 30 case

Answer 3

Question: Is millionaires tax ethically justified?
1. Are we talking about a rule (institution, structure) or an individual transaction?
For Prop 30, its a rule

2. Which principle to apply (1, 2a, or 2b)?
   2B - “Social and economic inequalities are to be arranged so that they are (b) to the greatest benefit of the least advantaged”
3. Who are the least advantaged?
   Low-income groups
4. Does it really benefit the least advantaged?
   In some cases, but it is not directly impacting low-income residents in CA

Question 4

gini coefficient vs. tax system

Answer 4

Gini coefficient measures the level of inequality on a scale of zero to one

Tax system reduces income inequality, but to a different degree across different countrie

Question 5

discussion questions for rawls and california prop 20

Answer 5

1. Would Rawls vote “Yes” on Prop 30?
   Yes (still redistribution)
2. Is Lyft’s $45 million support for Prop 30 ethically justifiable?
   What are their intentions to truly help with pollution
   Rawls
   1 -
   2A -
   2B -
3. Is Governor Gavin Newsom’s public opposition to Prop 30 ethically justifiable?
   Rawls
   1 -
   2A -
   2B -
4. Which ethical theory would support the argument in the Boston Globe article by Bruce Percelay?
   Utilitarianism
   Michigan’s Proposition - Does it help the least advantaged?
5. Would utilitarianism support progressive tax system?
   Max utility
   Depends on outcome.. Does the total output have max utility? Then it may be supported but if this system reduce incentives for the market, then no.