Proposition 40, known as the California billionaire tax, is polarizing, and to fight it two other propositions have been placed on the ballot.
Prop. 41 would require audits of new tax programs and Prop. 42 prohibits new state personal property taxes and certain retroactive state taxes.
If passed, either or both could invalidate the billionaire’s tax. But those behind these measures say that’s not the only goal.
“Every voter in California should vote yes on Prop. 41. It will bring new accountability, transparency to every one of our tax dollars that we give to the state. This will actually have the state auditor review where our money’s going, how it’s being spent, if it’s being wisely spent or wasted,” said Tracy Hernandez, who is part of the Yes on Prop. 41 campaign.
Could California become the first state in the country to enact a billionaire tax? Proposition 40 is an effort to fund the state’s healthcare system by taxing the ultra-wealthy.
“We want to make sure that we set the foundation where, if the legislature’s looking at increasing taxes, that the retirement and people’s savings that they’ve worked really hard for are not an option,” said Brian Marvel, who is part of the Yes on 42 campaign.
The initiative that gets the most votes takes effect. So even if Prop. 40 passes, if either Prop. 41 or Prop. 42 receive more votes, California wouldn’t have a wealth tax. Those funding 41 and 42 include Google co-founder Sergey Brin, who has donated more than $138 million to the campaigns.
“Propositions 41 and 42 are very deceiving measures put on the November ballot by a very small group of billionaires who are really trying to undermine and cancel out the billionaire’s tax. We know that there are strong protections in the state already that require audits for new state special taxes. Proposition 41 is redundant, and it would prohibit new state taxes to really address community needs like health care, like housing, like the community care investments that we need,” said Clarissa Woo Hermosillo with the ACLU of Southern California.
Gov. Gavin Newsom, who opposes Prop. 40, has now come out publicly in support of Prop. 42, going against his own party and some labor unions. Those against Prop. 42 have criticized Newsom’s endorsement, saying it shows he’s in lockstep with his billionaire backers.
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