Republican gubernatorial candidate Steve Hilton on Tuesday outlined the first round of spending cuts he says would fund his proposal to eliminate state income taxes for Californians earning up to $150,000.
In an interview with The California Post, Hilton said the state could pay for what he described as a sweeping tax overhaul — including an 8% flat tax on income above the first $150,000 — by sharply reducing government spending, starting with permanently ending California’s $126 billion high-speed rail project.
Hilton also said he would cut off funding for what he called the “homeless industrial complex,” referring to the billions of dollars the state has directed to homelessness nonprofits as California continues to struggle with a severe homelessness crisis.
Republicans have long argued that this spending has benefited nonprofit organizations without delivering meaningful results on the streets.
The Post has previously reported on examples it described as wasteful spending, including cases in Los Angeles where homeless residents were placed in new apartments in upscale neighborhoods at a cost to taxpayers of as much as $1.5 million per room.
Hilton’s announcement also took aim at political activity he alleged was supported with taxpayer dollars. He singled out CHIRLA, the Coalition for Humane Immigrant Rights, which has received nearly $34 million in government grants, and accused the group of involvement in ballot harvesting.
He said he would also eliminate what he characterized as “vanity projects,” including spending previously reported by The Post on costly portraits and nonprofit initiatives such as those led by Gov. Gavin Newsom’s wife, Jennifer Siebel Newsom, which have drawn federal scrutiny.
Hilton further pledged to impose a 5% efficiency savings target across all state departments and reduce the “Sacramento bureaucracy” workforce by 10%.
Download The California Post App, follow us on social, and subscribe to our newsletters
