Prop 40 wealth tax opponents outspend supporters by 90%, LA Times says
More than $351 million in political donations has poured into a high-stakes California ballot contest over a proposed wealth tax, with roughly 90% of that spending deployed to defeat the measure, according to latimes.com. Proposition 40 would levy a one-time, 5% tax on many assets of state billionaires who lived in California as of Jan. 1. The vast financial asymmetry has left proponents heavily outspent in an electoral battle set against the November vote.
Billionaires Fund Efforts to Defeat Wealth Tax
Opposition campaigns and related countermeasures have amassed $316.7 million, while proponents raised nearly $34.3 million, latimes.com reported. Building a Better California serves as the main funder of efforts to defeat the wealth tax. Among the largest individual donors opposing the measure are Google co-founder Sergey Brin, who has contributed more than $100 million, alongside former Google leader Eric Schmidt and venture capitalist L. John Doerr, who each provided $40 million. Brin, Schmidt and Doerr did not respond to requests for comment.
Supporters of the wealth tax raised $34.3 million, nearly all of it from Service Employees International Union-United Healthcare Workers West. Suzanne Jimenez, the union’s chief of staff, stated that the proposition is an emergency response to a looming disaster. By Oct. 17, pro-wealth-tax campaigns held $1.6 million on hand, relying largely on public events and media coverage.
Propositions 41 and 42 Aim to Nullify Proposition 40
Millions of dollars continue to flow into Propositions 41 and 42, two intertwined ballot initiatives designed to nullify Proposition 40 if either receives more votes. Supporters of Proposition 41 argue the measure requires audits for new state special taxes and bars new state taxes exempting their revenue from spending limits. Backers of Proposition 42 state it prohibits new taxes on retirement holdings and personal savings.
GOP strategist Rob Stutzman described the dynamic by noting that the pro-40 campaign approached the contest with constrained resources against heavy opposition. Jessica Levinson, an election law professor at Loyola Law School, noted that the initiative faces legal challenges regarding its retroactive application to billionaires residing in the state as of Jan. 1.
Democrats Divide over Funding and Budget Concerns
The funding imbalance also highlights a divide among Democrats and their allies. Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California, stated that her organization opposes Proposition 40 due to concerns over its impact on the state budget and healthcare funding. Meanwhile, proponents have relied on visibility events, including a downtown Los Angeles rally featuring Sen. Bernie Sanders.
Mark Zuckerberg addressed the state’s tax proposals by telling company leaders he planned to leave California to avoid having his control reduced by forced stock sales.
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