Opponents of the billionaire tax on the November ballot have raised significantly more funds than supporters, with the anti-Proposition 40 campaign and two other measures aimed at nullifying it raising $187 million compared to the $32 million raised by proponents of the wealth tax, according to campaign finance documents filed with the state. The reports, submitted on Thursday, cover donations through September 19 and do not account for additional funds received in the days following the deadline. The total amounts are expected to increase ahead of the November 3 election.
Most of the funds raised by supporters of Proposition 40, which proposes a one-time 5% tax on California billionaires' assets, have been allocated to gathering signatures to qualify the measure for the ballot. The campaign currently has $207,000 remaining, based on the latest finance reports.
Suzanne Jimenez, chief of staff of the Service Employees International Union-United Healthcare Workers West, criticized wealthy Californians for their opposition to the measure, claiming they are misleading voters. She stated, "The billionaires take and take — tax break after tax break — and now they’re spending that money to deceive voters and avoid paying their fair share. Voters want their money back from the billionaires and want local emergency rooms to stay open. California does not need more tax breaks for billionaires. California needs emergency rooms for patients, hospitals that stay open, and healthcare people can access and afford."
Opponents of the billionaire tax argue that it could have negative consequences. Dr. René Bravo, president of the California Medical Association, stated, "The more Californians learn, the more they see Proposition 40 for what it is — a harmful tax scheme that permanently damages the state’s budget and economy with zero accountability or safeguards to ensure funding actually improves care or lowers costs for patients."
Proposition 41 aims to nullify the billionaire tax if both measures are approved, provided it receives more affirmative votes. It would prohibit any new state tax from being excluded from a voter-approved cap on tax revenue spending. Molly Weedn, a spokesperson for the Proposition 41 campaign, remarked, "Californians deserve better results for their hard-earned tax dollars."
Proposition 42 would ban new taxes on personal property, intellectual property, retirement accounts, and other assets, limiting the ability of ballot measures or state lawmakers to impose or raise taxes retroactively, which are key components of Proposition 40. If both measures pass and Proposition 42 receives more affirmative votes, it would nullify the wealth tax.
The proposed billionaire tax has created divisions within California's Democratic Party, with Governor Gavin Newsom opposing it while the state Democratic Party supports it. Recent polling indicates that a majority of likely voters do not support any of the three proposals. According to a poll released by UC Berkeley’s Institute of Governmental Studies, 45% of likely voters supported the billionaire tax, while 42% opposed it.
In the context of another ballot measure, Proposition 39, which would require voters to present government-issued ID to cast ballots, opponents have raised $39.3 million compared to $15.6 million from supporters. The same poll shows that 52% of likely voters oppose the voter ID proposal, while 39% support it.
In the race to succeed Newsom, Democratic candidate Xavier Becerra has raised $35.8 million, while his GOP opponent, Steve Hilton, has raised $22.3 million. Becerra is currently leading in the polls, with 58% of likely voters supporting him compared to 33% for Hilton.