California Voters Weigh 5% Tax on 250 Billionaires as Polls Split on Prop 40
Updated
Updated · The Washington Post · Sep 24
California Voters Weigh 5% Tax on 250 Billionaires as Polls Split on Prop 40
3 articles · Updated · The Washington Post · Sep 24
Summary
November’s Prop 40 would levy a one-time 5% tax on the net worth of about 250 California residents worth more than $1 billion, putting a state wealth tax before voters in a closely watched national test.
Emmanuel Saez, one of the measure’s architects, argues the tax targets fortunes built through largely untaxed unrealized gains, citing data showing the top 1% captured 9% of U.S. income in the mid-1970s and more than 18% by 2001.
Support remains uncertain: one September poll showed just over half of likely voters backing Prop 40, while another found support below 50%.
Opposition is being financed largely by Silicon Valley billionaires and includes Governor Gavin Newsom and some labor groups, who warn the measure could drive wealth out of California and steer most proceeds to health care.
The vote is being watched beyond California because Democrats and democratic socialists see it as a bellwether for future state and national wealth-tax campaigns.