From California Post · · 1m
Billionaire Tax Fails in Court
California's wealth tax proposal faces constitutional challenges that could kill it before voting.
In brief
California's wealth tax proposal faces constitutional challenges that could kill it before voting. Proposition 40's wealth tax will likely fail in court due to retroactive dates and constitutional violations. Originally reported by California Post.
Tax Policy Quote
Don’t tax you, don’t tax me, tax that fellow behind the tree.
“Don’t tax you, don’t tax me, tax that fellow behind the tree”
Proposition 40
California's wealth tax targets only 200 billionaires but struggles in polls.
Tax Problems
Wealth tax causes fire sales, job losses, and becomes permanent after one-time.
Six Legal Reasons
Proposition 40 violates Commerce Clause, Equal Protection Clause, and constitutional rights.
Retroactive Tax
Tax applies to billionaires living in California on Jan 1, 2026, retroactive date.
Commerce Clause
Tax targets assets in other states or countries, violating fair apportionment rules.
Equal Protection Clause
Crippling penalties for private valuation experts who estimate assets below state tax.
Bill of Attainder
Tax targets specific individuals without judicial trial, violating constitutional rights.
The main idea
Proposition 40's wealth tax will likely fail in court due to retroactive dates and constitutional violations.
