California voters to decide on Propositions 41 and 42 this November
- California voters will decide the fate of two competing ballot measures this November—Propositions 41 and 42—that challenge a proposed billionaire tax and similar future state levies.
- Voters have told us already one of the top things on their agenda is they want more accountability and transparency, they want to know they're going to get...
- Proposition 42 approaches tax policy from a protectionist angle, seeking to prohibit new state taxes on personal assets, personal savings, investments, and retirement accounts.
California voters will decide the fate of two competing ballot measures this November—Propositions 41 and 42—that challenge a proposed billionaire tax and similar future state levies. Proposition 41 requires audits of new special taxes before they reach the ballot and counts resulting revenue toward the state spending limit, which could trigger taxpayer refunds. Meanwhile, Proposition 42 bans new state taxes on personal property, retirement accounts, and investments while restricting retroactive levies.
Proposition 41 focuses on spending audits and taxpayer refunds
Voters have told us already one of the top things on their agenda is they want more accountability and transparency, they want to know they’re going to get the bang for their buck that they’re giving to the state,
said Tracy Hernandez, a supporter of Proposition 41. Under the measure, any new special tax must undergo an audit before voters consider it at the ballot box. Revenue collected from such taxes would also factor into the state spending limit, creating a mechanism where taxpayers might receive direct refunds instead of seeing the funds diverted to other government programs.
Proposition 42 targets retirement accounts and personal property
Proposition 42 approaches tax policy from a protectionist angle, seeking to prohibit new state taxes on personal assets, personal savings, investments, and retirement accounts. The measure also places strict legal limits on retroactive taxes that apply to past situations.
It’s a proactive measure to protect retirement and our life savings,
said AJ Johnson, a veteran and supporter of Proposition 42. For veterans specifically, we spent years serving and we can’t change how much we invested, or how much time we served our country and community. So yes on Prop 42 protects those funds we worked so far to save and have.
Supporters frame the constitutional amendment as a safeguard for life savings earned through years of work and military service.
Labor unions oppose measures as an effort to undo the billionaire tax
Suzanne Jimenez, chief of staff for SEIU-UHW, characterized the ballot items as a billionaire-funded trick to undo the billionaire tax.
Jimenez defended the underlying billionaire tax as a modest one-time, 5% tax on the wealthiest people who really built their wealth on the public infrastructure and education system here in California.
According to union leadership, the proposed tax revenue is necessary to ensure that local hospitals and clinics stay open.
Voting rules determine which measure becomes law
The outcome at the ballot box will depend on vote totals for the competing measures. If the billionaire tax through Proposition 40 passes alongside either Proposition 41 or Proposition 42, whichever opposing measure receives the most votes will become law.