“A reckless tax”
LOS ANGELES, CA — In case you missed it, the Southern California News Group, representing 11 daily newspapers that reach more than 6 million readers across the five-county region, published a Sunday editorial urging Californians to vote NO on Proposition 40, calling it an “aggressive money grab that could sink California’s progressive budget.”
The editorial warns that Proposition 40 will not collect the revenue it promises, chases away current and future entrepreneurs and innovators, and could lead to a much broader wealth tax after the money runs dry.
The Southern California News Group’s publications include: The Orange County Register, Los Angeles Daily News, The Press-Enterprise (Riverside), The Sun (San Bernardino), Daily Breeze (Torrance), San Gabriel Valley Tribune, Press-Telegram (Long Beach), Pasadena Star-News, Redlands Daily Facts, Whittier Daily News, and Inland Valley Daily Bulletin.
These publications join a growing list coming out against Proposition 40, including La Opinión (“Proposition 40 would be good nationally. For California alone, it’s a bad idea”), Los Angeles Times (“Vote no on Prop. 40. It ignores education, housing and safety”), KCRA 3 (“Prop 40’s billionaire tax could come with unintended consequences”), San Diego Union Tribune (“Vote no on ‘billionaires tax’ to prevent economic chaos”), and Washington Post (“California already losing with billionaire tax referendum”), among others.
Southern California News Group: Endorsement: No on Proposition 40’s reckless wealth tax (September 13, 2026)
The Orange County Register Editorial Board warns that Proposition 40 could damage California’s budget, economy and job creation, while ultimately raising less revenue than its supporters hope.
“SEIU-UHW says the tax will bring in $100 billion to fill the hole the union believes the federal government has created with ‘cuts’ to health care funding. However, economists at the Stanford University-based Hoover Institution caution that after accounting for billionaires who have already left and the long-term repercussions of more of them leaving, Prop. 40’s one-time wealth tax would not only collect less than the $100 billion hoped for, but in the long-run would reduce tax revenues as billionaire investors take their money elsewhere.”
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“Another concern is the inevitable demand for more. The money from the one-time tax will run out within five years. Proposition 40 empowers the Legislature to change the Billionaire Tax Act with a two-thirds vote in each house. Beyond that, the Legislature could enact a much broader wealth tax once the mechanism for collecting it is established.”
Regardless of where one sits on the political spectrum, there’s very little to like about this measure and plenty to worry about. It’s an aggressive money grab that could sink California’s progressive budget. It pursues short-term aims despite the long-term consequences.
The editorial concludes by calling Proposition 40 a “reckless tax” and urging Californians to vote no.