California billionaire tax could be voided by rival ballot measures even if approved

Mixed · 2California voters will decide on 3 November whether to impose Proposition 40, a one-time 5 percent tax on Californians with more than $1 billion in assets, applying to taxpayers resident in the state as of 1 January 2026. 1 2 Mixed · 2Two competing measures on the same ballot, Propositions 41 and 42, could stop it taking effect: under the ballot rules Prop 40 would be nullified if Prop 42 or Prop 41 receives more votes, while Prop 40 contains its own provision that would nullify 41 and 42 if it gets more votes than they do. 1 2 Centre · 1Newsweek reports that Propositions 41 and 42 are sponsored by Building a Better California, a group established by Google co-founder Sergey Brin and former Google CEO Eric Schmidt. 1

Centre · 1Prop 41 would restrict new special taxes by requiring pre-election audits of qualifying initiatives, periodic state audits of new special taxes, and a bar on enforcing certain taxes exempt from the spending limit; Prop 42 would prohibit new taxes enacted after 1 January 2026 on retirement holdings, individually owned assets and personal savings, as well as retroactive taxes. 1 Mixed · 2Prop 40 is sponsored by the union SEIU United Healthcare Workers West and backed by Sen. Bernie Sanders, Rep. Ro Khanna and the Democratic Party of California; supporters say it could raise about $100 billion over five years, mainly for healthcare and other public programmes, and the union presents it as offsetting federal healthcare cuts. 1 2 Mixed · 2Gov. Gavin Newsom opposes Prop 40, favouring a national billionaire tax instead, and last Friday endorsed Prop 42, saying Californians' retirement and life savings should be protected from new state taxes; gubernatorial candidates Xavier Becerra and Steve Hilton also oppose Prop 40. 2 1

Mixed · 2Khanna called Prop 40 "the most important ballot initiative in America and in the world" and asked why so many Democratic establishment people oppose it, suggesting it is because those people are funding campaigns; opponents argue it risks driving wealthy residents out of the state. 2 1 Mixed · 2A UC Berkeley poll found 45 percent of registered voters backing Prop 40, with 12 percent undecided; the outlets differ on opposition, Newsweek giving 43 percent and the Washington Examiner 42 percent. 1 2 Centre · 1Per CalMatters' voter guide, cited by Newsweek, committees supporting Prop 40 had raised $31.7 million against $99.8 million for the opposing side. 1