The ballot measure, which would have needed to be approved by voters, would have changed the current system and required new tax hikes in the state to get voter approval before they could become law.

The court unanimously ruled to take the issue off the ballot, saying the provision would hinder the basic function of government, and ordered the secretary of state to halt any further steps to put the initiative on the ballot.

“[The proposed changes] are within the electorate’s prerogative to enact,” Justice Goodwin Liu wrote, “But because those changes would substantially alter our basic plan of government, the proposal cannot be enacted by initiative. It is instead governed by the procedures for revising our Constitution.”

Now that the ruling has gone against what they wanted, it has likely left these groups feeling annoyed and upset.

Rob Lapsley, president of the California Business Roundtable, has said that Newsom has eliminated the voices of 1.43 million voters who wanted to support the Taxpayer Protection Act on the November ballot.

According to Calmatters, this is the first time in over two decades that the California Supreme Court has struck down a ballot initiative after it has reached the step of having a full hearing.

This is why this is a landmark case: It has prevented the issue of raising taxes from becoming yet another ballot measure and could even pave the way for more decisions like this.

Should voters have to approve new tax hikes, which could be seen as an intervention, there would also be issues with the functioning of the state’s government.

These same people also believe that the idea was conceived by those who prioritized corporate interests and greed over other Californians.

However, with this latest ruling by the California Supreme Court, this is all about to change.

Some responded, saying that because the court was mostly Democrat-appointed, it was thinking in its own best interests rather than what is best for California as a whole.

“Yet another reason I left California. Newsom & democrats win, democracy loses.  And taxpayers (whoever still calls Commiefornia home) get stuck with the tab,” said an X user in response to the decision.

Taxes are just one of the reasons for this. Other issues include a high cost of living, pricey housing, high bills, and a lack of employment opportunities.

The justices ultimately ruled in favor of the state saying that the revision would “fundamentally rework the fiscal underpinnings of our government at every level.”

“There is no independent judiciary in California anymore,” said Rob Lapsley, president of the California Business Roundtable. “Be scared. Because it’s only going to get worse.”

However, the Associated Press reported that a written statement with an aide attribution said that Newsom thinks the ballot initiative process “does not allow for an illegal constitutional revision.”

Last year, Democrats introduced the California Wealth and Exit Tax bill, which could mandate tax increases based on personal wealth and penalize companies and individuals who left the state to avoid its taxes. It finally got a hearing in January of this year.

This tax increase will be used for gun safety programs and school safety improvements. Had the Supreme Court decision gone the other way, it could have had catastrophic effects on this.

Earlier this year The Wall Street Journal accused Newsom of supporting a wealth tax, to which the governor responded with “Are you supporting a wealth tax? No, yet again. Why the hell do you keep writing about that?”

Republicans have been able to frame Newsom as being greedy for wanting to raise taxes, which could put him in a bad position should he try and run for the presidency.

Generally speaking, most Americans support these wealth taxes, as many feel that income is unfairly distributed across the US. However, those who are earning a high income aren’t quite as happy.

Personal income tax receipts contributed $3.4 billion to the revenue shortfall. However, personal income tax payments were down by $4.7 billion, and corporate tax receipts were $1.4 billion less than predicted.

“You can both be opposed to new taxes and to destructive ballot measures that would hamstring government from protecting itself in a crisis,” Governor spokesman Bob Salladay said in a statement.

In February, the Legislative Analyst’s Office estimated that the budget deficit for 2024-25 would be around $73 billion. Newsom and the state legislature have been scrambling to reduce this deficit as much as possible through a series of revised budget proposals.