Three California Propositions Put Billionaire Tax in Voters’ Hands

The three measures have overlapping effects, leaving some voters uncertain about how to cast their ballots. Proposition 40 would levy a single charge capped at 5% on the covered assets held by people worth at least $1 billion who lived in California on Jan. 1. Supporters estimate it could raise about $100 billion over five years, with 90% going to health care and the rest to education and food assistance.

Proposition 41 would require audits of programs financed by proposed special taxes and bar certain new taxes from being exempted from the state’s spending cap. Proposition 42 would prohibit new taxes on personal assets, including financial holdings, and restrict certain retroactive taxes. Both measures could block Proposition 40 if they receive more yes votes than it does.

Supporters say the billionaire tax could fund services for people in need. Opponents argue it could push wealthy residents and businesses out of California, damaging innovation and reducing future state revenue. The proposal has divided Democratic politicians and labor groups, while opponents have spent heavily to defeat it.

A UC Berkeley Institute of Governmental Studies poll found 50% of likely voters planned to oppose Proposition 40 and 42% to support it. San Francisco voter Mark Polyakov said the measures were difficult to understand and left Propositions 41 and 42 blank. Another voter, John Klopacz, said he thought the three proposals might cancel one another out.

If all three pass, their conflicting provisions could lead to a legal fight over which measure takes effect. The results are expected next week.

Billionaire Tax Could Fund Health Care as Rivals Threaten to Block It

California voters face a choice over whether billionaires should help fund health care and other services—or whether competing measures will block that tax. Proposition 40 would levy a single charge capped at 5% on assets held by billionaires who lived in California on Jan. 1. Supporters estimate it could generate about $100 billion over five years, with 90% for health care and the remainder for education and food assistance.

Propositions 41 and 42, both backed by opponents of the billionaire tax, could undercut Proposition 40. Proposition 41 would prevent certain new taxes from escaping the state’s expenditure cap, while also mandating reviews of initiatives financed through proposed special taxes. Proposition 42 would prohibit new taxes on personal assets and restrict some retroactive taxes. Either could invalidate Proposition 40 if it receives more yes votes.

Supporters say the wealthy can afford the tax and that the revenue is needed to help people who need services. Yet the proposal has divided Democratic politicians and unions, even as it has support from the state Democratic Party and Sen. Bernie Sanders. Opponents argue the tax would drive wealthy residents and businesses away, hurting the state treasury.

A UC Berkeley Institute of Governmental Studies poll found 50% of likely voters planned to oppose Proposition 40, compared with 42% who supported it. Some voters say the overlapping measures are hard to decipher. If all three pass, the result could be an extensive legal battle over whether the tax can take effect.

California’s Billionaire Tax Faces Voter Backlash and Rival Measures

California’s proposed billionaire tax faces a clear risk: its opponents say a single levy on assets could drive wealthy residents and businesses away, weakening the state’s future tax base. Proposition 40 would tax covered assets of billionaires who lived in California on Jan. 1, at a rate of up to 5%. Supporters estimate it could raise about $100 billion over five years, mostly for health care.

Two competing ballot measures could stop it. Proposition 41 would prevent certain new taxes from escaping the state’s expenditure cap, while also mandating reviews of initiatives financed through proposed special taxes. Proposition 42 would prohibit new taxes on personal assets and restrict certain retroactive taxes. If either wins more votes in favor than Proposition 40, it could keep the billionaire tax from taking effect.

Opponents say the tax threatens innovation and could push wealthy people and businesses out of California, reducing future state revenue. Some of the state’s richest residents are spending heavily to defeat it. The proposal has also split Democratic politicians and labor groups, showing that support for a new tax is not uniform even among its potential political allies.

The measure is already losing ground: a UC Berkeley Institute of Governmental Studies poll found 50% of likely voters planned to oppose Proposition 40, while 42% backed it. The competing proposals have left some voters unsure how to vote. If all three pass, the conflicting rules could trigger a major legal battle.