Proposition 40 would impose a one-time 5% tax on the wealth of California taxpayers and trusts with assets over $1 billion. Supporters say it would raise $100 billion, mostly for healthcare. Critics, including Gov. Gavin Newsom, say it could drive the wealthy out of the state.
If passed, California's Proposition 40 would levy a one-time, 5% tax on the wealth of California taxpayers and trusts with assets valued over $1 billion. Most of the revenue would be dedicated to replacing federal funding cuts to healthcare.
How the revenue would be used
Supporters say Prop 40 will raise $100 billion, with 90% of it restoring healthcare cuts and the other 10% going to food assistance and public education. Revenue from the measure would pay for state healthcare programs, food assistance programs and public education.
Opposition and political positions
Critics say the measure would cause a wave of billionaires to leave California, potentially lowering the state's long-term tax revenue. Gov. Gavin Newsom opposes the measure and warns it would prompt the wealthiest to leave California, while Bernie Sanders supports it. Newsom supports a national minimum tax on anyone with net worth above $100 million.
Competing measures on the ballot
Even if Prop 40 wins a majority, it would be blocked from taking effect if at least one of two measures designed to nullify it, also on the ballot, passes and receives more yes votes.
