Gov. Gavin Newsom (D-CA) is sparring with other Democrats over California’s proposed billionaire tax, publicly endorsing a ballot measure that would cancel out the proposed tax on the state’s wealthiest residents.
California voters hitting the polls this midterm season will vote “yes or no” on Proposition 40, a ballot measure that asks whether or not the Golden State should impose a one-time, 5% net-worth tax on billionaire residents. While the proposal is supported by progressive Rep. Ro Khanna (D-CA) and socialist Sen. Bernie Sanders (I-VT), Newsom has put his foot down against the proposal, saying in June that he supports a national billionaire tax instead, as critics of the state ballot measure worry about industry heads fleeing California for other states to avoid the levy.
Last Friday, Newsom endorsed a different November ballot measure, Proposition 42, championed by opponents of Proposition 40, which would nullify the billionaire tax even if voters approved the one-time levy. Proposition 42 would ban taxes on personal property ownership and any retroactive taxes that apply to a taxpayer’s previous activities.
“I am proud to stand with firefighters, blue-collar unions, veterans, seniors, and small businesses in support of Prop 42,” Newsom said in a statement. “We all agree that Californians deserve to have their retirement and life savings protected from new state taxes so those savings are there when they need them. That’s why I’m voting Yes on Prop 42.”
Service Employees International Union-United Healthcare Workers West advocated the billionaire tax, pushing for California to direct 90% of the proposed tax’s revenue to the state’s healthcare system and the other 10% to public education and food assistance programs. The union has branded the tax as a way to offset what it calls “massive cuts to federal healthcare funding” under the Trump administration.
Khanna, in an MS Now interview last week, called it “the most important ballot initiative in America and in the world.”
LIBERALS HOPE CALIFORNIA BALLOT MEASURE WILL BE THE FOOT IN THE DOOR FOR WEALTH TAXES
“In California, a one-time 5% tax would allow us to prevent 3.5 million Californians from losing health insurance. This is a policy that could transform the economy, so it’s not just working for a few billionaires. And the question is, why are so many Democratic establishment people against this tax? It’s because these folks are funding the campaigns,” Khanna said.
According to a September University of California, Berkley-Politico poll on Proposition 40, the proposed billionaire tax, 45% of voters are for the measure, 42% oppose it, and 12% are undecided.
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[ H/T Washington Examiner ]
