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Proposition 42 passes, complicating California wealth taxes
Sacramento Bee • • nation
Key Points:
- California voters approved Proposition 42, a constitutional amendment barring future taxes on personal property and retirement accounts, with about 51.7% of the vote, potentially complicating future wealth tax efforts.
- Proposition 42 was backed by a committee funded by billionaire Sergey Brin and other critics of the defeated Proposition 40, which proposed a one-time 5% wealth tax on billionaires.
- The measure received support from labor groups such as the California Professional Firefighters and the State Building and Construction Trades Council, emphasizing protection of workers' retirement savings.
- Opponents, including the SEIU-United Healthcare Workers West union behind Prop. 40, plan to pursue new wealth tax initiatives in 2028 and criticize Prop. 42 for shielding billionaires and limiting future taxation options.
- Prop. 42’s passage introduces legal challenges for future wealth tax proposals, as any new measures would need to circumvent or override its provisions, including bans on retroactive taxation.
