Newsom backs Prop 42: not just killing the billionaire tax, but amending the constitution to ban wealth taxes in California for good
SACRAMENTO — California Gov. Gavin Newsom on Friday, Oct. 9, endorsed Proposition 42, a ballot measure aimed at killing the proposed billionaire tax and amending the state constitution to prohibit wealth taxes in California permanently. The Wall Street Journal reported the endorsement on Oct. 10, adding a heavyweight twist to a tax battle that has already split the Democratic Party.
Prop. 42, funded in part by Google co-founder Sergey Brin and backed by tens of millions of dollars in campaign money, targets Proposition 40 — a healthcare-workers union proposal for a one-time 5% tax on the net worth of California residents with $1 billion or more in assets, intended to offset steep Medicaid cuts signed into law last year by President Trump. "Californians deserve to have their retirement and life savings protected from new state taxes," Newsom said in a statement released through the campaign.
But Prop. 42's reach goes well beyond sinking Prop. 40. It would change the California constitution to prohibit new taxes on financial assets or personal property other than real estate — covering pensions and 401(k) accounts before retirees draw on them, investments, financial assets, business holdings, art collections, and all other forms of personal wealth. Supporters call it protection for middle-class retirement savings; critics note there is no proposal to tax middle-class retirement accounts, and the billionaire tax itself exempts many kinds of retirement accounts.
Newsom's position puts him at odds with his own party: the California Democratic Party voted in August to endorse the billionaire tax, and several large unions oppose Prop. 42. Newsom has opposed the tax since last year, arguing it could drive the state's largest taxpayers to flee. On Nov. 3, voters will decide on both measures — and if both pass, a constitutional legal battle is all but certain, in what is being watched as a preview of the national wealth-tax debate.
Source: GSM · USA (original Chinese edition)
Photo: 加州州长 Gavin Newsom 官方照片，加州副州长办公室，公有领域（Wikimedia Commons）
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