Prop 40

Imposes 5% tax on certain taxpayers with assets over $1 billion; revenue primarily for health care. Exempts revenues from constitutional requirements for school funding and spending limit. 

Fiscal Impact: Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires. 

Supporters: US Senator Bernie Sanders; SEIU United Healthcare Workers West 

Opponents: California Primary Care Association; California School Boards Association; California Taxpayers Association

WHAT YOUR VOTE MEANS

YES
A YES vote on this measure means: The state would collect a one-time tax from billionaires equal to 5 percent of their wealth.

NO
A NO vote on this measure means: The state would not collect a one-time tax from billionaires equal to 5 percent of their wealth.

ARGUMENTS

PRO
Vote YES on 40 to tax billionaires. Trump slashed healthcare funding to pay for billionaire tax breaks, eliminating coverage for over a million Californians and doubling health insurance premiums for millions more. It’s time to make billionaires pay their fair share and stop sticking the middle class with the bill.

CON
Prop. 40 is a flawed, one-time tax scheme that hurts our economy, damages our state budget, and contains a loophole exposing all Californians to taxes we can’t afford—but does nothing to lower healthcare costs. No safeguards, no accountability. Join California Teachers Association, California Medical Association, California Children’s Hospital Association, California Professional Firefighters, State Building and Construction Trades Council of California, Democrats and Republicans: NO on 40.