Proposition 40: The billionaire tax. Around 200 Californians worth more than a billion dollars would be hit with a one-time 5% tax to raise around $100 billion in five years to be used mainly for healthcare. The idea behind this is that it would help make up for the shortfall created when the federal Big Beautiful Bill disallowed Managed Care Organization Provider Taxes as a way for the state to provide its match for Medicare dollars. It is possible that this policy could change soon, and the money generated from this billionaire tax won’t be ready for spending any time soon as the state must develop a mechanism for its collection and deployment. Having it be a one-time tax is also foolish. Why not simply raise the state taxes on those making more than $10 million a year to 15% to capture additional and ongoing revenue? People want to stick it to billionaires, but let’s not be silly about it. NO
