Wealth tax

Some of the state’s wealthiest residents have spent hundreds of millions to defeat Prop. 40, the “billionaire tax.” Supporters say billionaires should pay their “fair share” and help fund social services.

California voters haven’t had to make so many decisions about tax policy at the ballot since 1994. Our analysis shows voters tend to reject new taxes.

Proposition 40 would levy a one-time tax on billionaires. Some say the initiative opens the door to tax flight and more aggressive taxation. Others say there’s no way to predict the outcome.

Hospitals and a healthcare union have agreed to pull rival initiatives from the ballot, but a proposed one-time 5% tax on billionaires remains headed to November voters.

Newsom has already vowed to tank a proposed ballot initiative that would impose a 5% wealth tax on the state’s billionaires to bolster Medi-Cal. Progressive lawmakers and their allies in labor and health seem hopeful that Newsom could support a different long-shot funding idea.

Labor and health care groups are collecting signatures to put a measure that would levy a one-time 5% tax on the wealth of about 200 billionaires in California.