Your guide to Proposition 41: Special tax audit proposal could block billionaire tax
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Set us as preferred As the debate about taxing billionaires to fund healthcare escalates, California voters also will face decisions about whether to approve two propositions that could cancel out the proposed wealth tax.Those measures include Proposition 41, also known as the Improving Transparency, Effectiveness and Efficiency in California Government Act.Supporters say the measure aims to cut wasteful government spending by requiring audits for new state special taxes.It also would bar new state taxes that exempt their revenue from a state spending limit.
Since this conflicts with the proposed wealth tax, opponents say it’s a “billionaire-funded smoke screen” that would block the billionaire tax.California California’s general election takes place on Novemer 3.
Learn about L.A.’s city and county races as well races for state office.Proposition 41 requires the state auditor to review programs funded by proposed special taxes before they appear on the ballot.The auditor would examine whether the program is achieving its goals, how to cut the program’s costs by at least 10% annually and other areas.
Under the act, new or higher special taxes enacted after Jan.1, 2026 would be audited every four years.The act also prohibits new state taxes from being exempted from a voter-approved state spending limit.
That could prevent Proposition 40, the proposed billionaire tax, from becoming law even if voters approve it, according to the Legislative Analyst’s Office.This could happen if Proposition 41 receives more “yes” votes than Proposition 40.The California Taxpayers Assn., the California Society of Certified Public Accountants, the CalAsian Chamber of Commerce and others back the proposition.
They say it would result in the government spending taxpayer dollars more wisely while improving transparency.The bulk of the contributions to support the proposition have come from Building a Better Califor...