California voters will decide on 14 state propositions on the November 3 ballot. These range from bonds for affordable housing to the contentious onetime tax on billionaires. Below are the Bay Area Reporter’s recommendations.
Proposition 40: Imposes One-Time Tax on Certain Taxpayers. NO. This initiative constitutional amendment and statute has garnered support from many who are fed up with the wealthy not paying their fair share in taxes. But Prop 40 is not the answer. It would impose a one-time tax of up to 5% on certain taxpayers with covered assets valued over $1 billion, according to the voter guide. Proponents claim that 90% of the revenue would go toward healthcare, but this is a one-time tax, meaning that in the years following, the state would find itself in the position it’s in now: high healthcare costs that impact access to care for so many Californians.
We’re skeptical that the revenue will come in as expected; rather, it likely will cost the state $25 billion in lost revenue as companies and wealthy residents leave the state, as opponents argued. Some billionaires have already left, meaning they won’t pay any state taxes at all. In short, this is a poorly-designed measure that will damage the state’s economy. Vote NO on Prop 40.