From NPR · · 2m
California votes on first-ever wealth tax for billionaires
Proposition 40 would impose a one-time 5% tax on people worth over a billion dollars, but Democrats in the state are divided on whether it works.
In brief
Proposition 40 would impose a one-time 5% tax on people worth over a billion dollars, but Democrats in the state are divided on whether it works. California voters are deciding whether to impose a one-time five percent tax on billionaires' wealth to fund healthcare, but the state's Democratic leaders are split on the…
California's novel wealth tax proposal
California voters are deciding on Proposition 40, which would impose a one-time five percent tax on people in the state with over a billion dollars of wealth, including stocks, bonds and artwork.
How the tax would work
Someone worth one hundred billion dollars would owe five billion dollars to the state. The proposal would fund healthcare after Republicans in Washington cut benefits to provide tax breaks for the rich.
Support at the grassroots
At a farmers market in Kensington near Berkeley, attorney Derik Hilliard supports the wealth tax. He says a one-time levy to distribute wealth for California is a small ask.
“If a person has a billion dollars, you know what that is? That's a thousand million.”
Young voters see inequality
Twenty-three-year-old Julien Tremblay is moving back with his mom to save money. He says California's wealth distribution is out of balance and contributes to high inflation and rising cost of living.
Doubts about the approach
Massage therapist Kellyn Foxman supports taxing the rich but questions whether Proposition 40 is effective as written. She would prefer the money go to other public services beyond healthcare.
“In essence, it's exactly what we need. However, as written, I don't think it's as effective as we hope it will be.”
Fear of billionaire flight
Sharon Silverman believes billionaires should pay tax like everyone else but worries that taxing them too much will cause them to leave California and take jobs with them.
Democratic leaders are divided
U.S. Senator Bernie Sanders of Vermont has toured California supporting Proposition 40. But the state's Democratic governor, Gavin Newsom, opposes it, preferring a national wealth tax instead.
Stakeholders split on the measure
Ads flood California on television, the web and in texts. Some labor unions support Proposition 40 while others oppose it. Medical groups are also divided on the proposal.
Billionaires fund opposition
Tech mogul Sergey Brin has fueled the opposition campaign against Proposition 40. Republicans oppose higher taxes, but in heavily Democratic California, the outcome will largely depend on how Democrats vote.
The headline
California voters are deciding whether to impose a one-time five percent tax on billionaires' wealth to fund healthcare, but the state's Democratic leaders are split on the approach.
