Gubernatorial candidate Steve Hilton has unveiled a sweeping plan to reshape California, centered on a proposal to eliminate the state income tax for individuals earning up to $150,000 annually. The plan, detailed Tuesday, would be funded by significant reductions in state spending.
Under Hilton's proposal, a flat 8% tax rate would apply to income exceeding $150,000. To finance these cuts, Hilton cited several areas for spending reductions. A key target is the state's high-speed rail project, which he plans to permanently shelve, representing a saving of $126 billion. He also plans to defund what he termed the "homeless industrial complex," criticizing the current flow of state funds to homeless nonprofits, which he argues have not yielded sufficient results.
Hilton also specifically called out the Coalition for Humane Immigrant Rights (CHIRLA), stating it received nearly $34 million in government grants and alleging it engaged in ballot harvesting. He indicated a desire to end taxpayer funding for political activities.
Furthermore, Hilton intends to eliminate what he described as "vanity projects," such as expensive portrait commissions and nonprofit initiatives, including those associated with Jennifer Siebel Newsom, which have reportedly faced federal scrutiny. He also aims for a 5% efficiency saving across all state departments and a 10% reduction in state bureaucracy headcount in Sacramento.