Your last-minute guide to Propositions 40, 41, 42: The billionaire battle
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Set us as preferred The so-called billionaire tax has become one of the most contested California propositions in years, generating national interest and massive spending by opponents.It also has spawned two rival ballot measures.Here’s a cheat sheet for sorting it all out.Proposition 40 would impose a one-time 5% tax on California billionaires’ assets.
The tax applies to people with a net worth of at least $1 billion who resided in California on Jan.1.Ninety percent of the tax would fund healthcare, and 10% would go toward education and food assistance.The tax would affect hundreds of billionaires whose net worth includes assets such as their businesses, stocks and other investments.
Real property, pensions and retirement accounts generally would be excluded.California Prop 40, which would tax the assets of California billionaires to mostly fund healthcare, has divided Democratic politicians, labor unions and other groups.It’s called the Improving Transparency, Effectiveness and Efficiency in California Government Act.
But it is deeply connected to Proposition 40 and is funded by foes of the billionaire tax.Proposition 41 requires the state auditor to review programs funded by proposed special taxes before they appear on the ballot.More importantly, it also prohibits new state taxes from being exempted from a voter-approved state spending limit.The Legislative Analyst’s Office says passage of Proposition 41 could prevent Proposition 40, the proposed billionaire tax, from becoming law even if voters approve it.
This could happen if Proposition 41 receives more “yes” votes than Proposition 40.California Prop 41 would require audits for new state special taxes and prohibit certain new state taxes.
It also could nullify the billionaire tax.Proposition 42 would limit the state’s ability to impose certain new taxe...