California is evidence that raising taxes is crucial in offering residents the best opportunities possible during tough times.
Despite a nationwide student debt crisis, California’s graduates have incurred the third lowest debt throughout the nation.
This is due to the relatively large amount of financial aid the state offers through the Cal Grant, according to the Institute for College Access and Success.
The income tax on top-earners is the highest in the nation, which is helping to fund the Cal Grants that have expanded access to higher education throughout the state.
Though students are benefitting, opponents of tax hikes claim that entrepreneurs will flee in order to avoid losing profits. They say this will be counter-productive in earning more state revenue.
However, a study by the Stanford Center on Poverty and Equality contradicts this.
The report found tax cuts in 1996 did not increase the rate of migration of millionaires to California. It also revealed they continued to flow in following a 2005 tax hike up until the 2008 recession.
If our state needs financial support for a better future, California voters should not hesitate in asking the wealthy to help others climb the social ladder.