Proposition 40 – One-Time Wealth Tax
Proposition 40 – One-Time Wealth Tax
Position: Oppose
Imposes a one-time tax of up to 5% on certain taxpayers and trusts with covered assets exceeding $1 billion, with most proceeds directed to healthcare.
Link: More Information
Arguments in Support: Supporters argue that the people who would pay the tax are those who benefited the most financially from recent federal tax reforms. Congress also cut tens of billions from Medicaid, known as Medi-Cal in California, which provides health insurance to low-income people. SEIU-UHW argues those cuts will cause hospitals and clinics to close, costing thousands of jobs and worsening access for all patients.
Arguments in Opposition: Opponents include Silicon Valley entrepreneurs, business interests, and some health and labor organizations. They argue the proposal will backfire by causing billionaires to leave California and decreasing tax revenue in the long run. Health groups say they were not consulted in designing the measure and that it does not solve the long-term fiscal challenges of funding healthcare. The same groups backed Propositions 41 and 42, competing measures that would place limits on new special taxes.
Support
· Service Employees International Union-United Healthcare Workers West
· Vermont Sen. Bernie Sanders
· Teamsters California
· AFSCME California
Oppose
· California Business Roundtable
· California Medical Association
· California Teachers Association
· Planned Parenthood
· California Professional Firefighters
· State Building and Construction Trades
· Crypto executive Chris Larsen
· Venture capitalist Ron Conway