California appropriately treats all income the same for tax purposes, whether earned by wages, salaries, interest, dividends, rent or capital gains. Meg Whitman would continue to tax all income except capital gains. Her proposal to eliminate the tax on capital gains says, in effect, that your income is taxed and mine is not.
We estimated, using proxies for her wealth and her investments, that she would save between $8 million and $40 million by eliminating the tax on her capital income over four years. That’s a wide range, but her failure to release her tax returns means that we can only estimate the savings, of which $8 million is a very low end.