Why some California Healthcare Groups Oppose a Tax that Would Send 90% of Its Money to Healthcare
Opponents say the measure could let lawmakers expand the tax, while supporters say it would apply only to billionaires and fund health care and education.
- California voters will decide in November on Proposition 40, a measure sponsored by the SEIU-UHW healthcare workers union that would impose a one-time 5% tax on billionaires with at least $1 billion in assets.
- Supporters argue the tax could generate $100 billion for healthcare, yet opponents including California Medical Association CEO Dustin Corcoran and Planned Parenthood Affiliates of California CEO Jodi Hicks worry about legislative discretion over spending.
- UC Berkeley economist Emmanuel Saez estimates the tax could raise $100 billion, while a Hoover Institution analysis projects roughly $40 billion and warns the state could lose $25 billion from reduced income-tax receipts.
- Critics term the proposal a "Trojan horse," alleging lawmakers could extend taxes beyond billionaires, though proponents maintain the measure restricts 90% of funds to healthcare and 10% to education and food assistance.
- A Public Policy Institute of California survey shows 52% of likely voters support the measure; Proposition 41, which mandates audits for special tax funds, could invalidate Proposition 40 if it receives more votes.
22 Articles
22 Articles
'Trojan horse': California's top 1% pay nearly half the state's income taxes. Prop 40 opponents warn the billionaire tax could reach everyone else
California’s revenue is notoriously top heavy, leaving state coffers vulnerable to boom-and-bust cycles as the wealthiest residents see their incomes rise and fall with the stock market. In recent years, the top 1% of California households have accounted for about 40%-50% of all personal income tax revenue, according to the conservative Hoover Institution. In fact, the top 1% paid more than $60 billion in California personal income taxes in 2021…
On October 5, Californians who vote by correspondence began to express themselves on the tax on billionaires in view of November 3, when the Proposition 40 will also be on the Midterm election card. That is a one-off withdrawal of 5% on the fortunes of the approximately 250 super rich residents in the State on January 1 [...] The article The Californian tax on billionaires arrives at the vote and they unleash: campaigns with misinformation and f…
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