Top Democrats join the wealthiest in fighting a California tax increase on billionaires
Summary
California voters will decide on Proposition 40, a one-time 5% tax on billionaires’ wealth over $1 billion. The tax aims to raise money to help healthcare after federal cuts, but it faces strong opposition from many Democrats, Republicans, and wealthy Californians who worry it will drive billionaires out of the state.Key Facts
- Proposition 40 would tax 5% of the net worth of billionaires in California exceeding $1 billion.
- The revenue would mainly support healthcare programs affected by federal funding cuts.
- The tax targets wealth, mostly held in investments, rather than income from work.
- Opposition to the measure has raised over $300 million, with Sergey Brin, Google co-founder, contributing about a third.
- Supporters, including Sen. Bernie Sanders and Rep. Ro Khanna, have raised much less money and rely on public rallies.
- Polls show voters nearly evenly split, with 52% supporting and 46% opposing the tax.
- Critics say the tax could cause billionaires to leave California, reducing tax revenue from wealthy residents.
- Governor Gavin Newsom opposes the tax but supports a national billionaire tax, warning a state-only tax might harm California’s budget.
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