The essentials
Californians vote November 3 on Proposition 40, a one-time 5% billionaire wealth tax opposed by Governor Newsom.
California voters will decide Proposition 40 on November 3. The measure would impose a one-time 5% tax on billionaire wealth, with projections of about $100 billion for California healthcare. The tax would be due in 2027 and payable over five years.
Real estate, pensions and retirement accounts would generally be excluded. The potential tax for Mark Zuckerberg is estimated at about $12.4 billion.
The California Democratic Party has endorsed Proposition 40, while Governor Gavin Newsom opposes it. Palmer Luckey, Chris Larsen and Sergey Brin are among those opposing the tax, and more than $300 million has been contributed to campaigns against it. Nvidia CEO Jensen Huang has said he does not mind paying more taxes.
The Legislative Analyst's Office estimates the tax could generate tens of billions of dollars, and estimates an income tax revenue loss under $1 billion annually. Stanford economists have questioned whether the tax could reduce revenue.
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Backers point to $100 billion for healthcare funding
Supporters of Proposition 40 point to projections that the tax could raise about $100 billion for California healthcare. The California Democratic Party's endorsement places the measure among the party's positions for the November 3 ballot. Real estate, pensions and retirement accounts would generally be excluded, which narrows the taxed base.
Opponents question revenue and highlight over $300 million spent
Opponents, including Governor Gavin Newsom, Palmer Luckey, Chris Larsen and Sergey Brin, oppose the measure. Stanford economists have questioned whether the tax could reduce revenue, and the Legislative Analyst's Office estimates an annual income tax revenue loss under $1 billion. More than $300 million has been contributed to campaigns against the tax.