Proposition 40 – Billionaire Tax
IJ Action Recommendation: VOTE YES
Summary
Prop 40 would require that the approximately 200 Californians whose net worth is over $1 billion pay a one-time 5% tax to raise funds for healthcare, education, and food assistance programs. It is estimated that this tax will raise approximately $100 billion over the next five years.
Supporters Say
Supporters say that ensuring that all Californians have access to healthcare and education is a priority, and this tax can help ensure that hospitals and clinics stay open, healthcare workers keep their jobs, and education continues to be funded through economically uncertain times. They point out that the wealth of billionaires has grown exponentially, and this one-time tax is key to making sure they pay their fair share. The Yes on Prop 40 campaign is led by labor unions such as SEIU-UHW, UNITE HERE, and the California Nurses Association. Prop 40 has also been endorsed by the CA Democratic Party and Senator Bernie Sanders.
Opponents Say
Opponents argue that this billionaire tax will drive wealthy individuals and companies out of California, leading to a loss in revenue in the long term. They also raise concerns about how the funds will be spent, stating that there is no independent oversight included in the measure’s language. The No on Prop 40 coalition includes some labor unions and healthcare organizations, such as the California Teachers Association and Planned Parenthood, as well as prominent Democratic leaders such as Governor Gavin Newsom and candidate for governor Xavier Becerra. Many law enforcement and business associations are opposed as well, such as the Peace Officers Research Association, California Police Chiefs Association, and the California Chamber of Commerce.
IJ Action Recommendation
VOTE YES. Prop 40 is a one-time tax that will be a drop in the bucket for the ultra-wealthy billionaires in our state that will protect jobs and services for healthcare and education that our state strongly needs. The organizations and individuals in opposition are trying to protect their own economic interests, and we believe it is much more important to care for our communities rather than protect the wealth of billionaires