Billionaire tax: What to know about California's Prop 40
Summary
California voters are considering Proposition 40, which would impose a one-time 5% tax on the wealth of billionaires in the state. The revenue would support health care, food assistance and public education, while the measure’s opponents warn it could prompt billionaires to leave California and face legal challenges.Key Facts
- Proposition 40 requires a simple majority of votes to pass.
- The proposed tax would apply once to California taxpayers and trusts with assets valued above $1 billion.
- The state voter guide estimates that about 200 California billionaires would be affected.
- The measure’s revenue is intended mainly to offset health care cuts in President Donald Trump’s tax legislation.
- The Legislative Analyst’s Office estimates the tax could raise tens of billions of dollars.
- Supporters say the tax could help fund public assistance programs that have faced recent cuts.
- Opponents say billionaires could leave the state, potentially reducing tax revenue over time.
- Some opponents also warn that the tax could face legal challenges.
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