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Voters pass Proposition 42, barring new taxes on personal assets
Los Angeles Times • • nation
Key Points:
- California voters approved Proposition 42, a measure banning new taxes on various personal assets including 401(k) accounts, business interests, digital assets, and intellectual property, though real estate is excluded.
- The proposition passed narrowly with just over 51% of votes counted, and it also prohibits retroactive taxes except during state-declared emergencies.
- Proposition 42 was designed as a “poison pill” to nullify Proposition 40, a rejected one-time wealth tax on billionaires’ assets, effectively closing off a potential new revenue source for the state.
- The measure was supported by groups including Building a Better California, funded by tech executives such as Sergey Brin, as well as the California Small Business Assn. and professional firefighter organizations.
- Opponents of wealth taxes indicated they may attempt to propose a new wealth tax in 2028, but any future tax targeting personal assets would require voters to overturn Proposition 42.
