Breaking news: Billionaires are opposed to the wealth tax because it will hurt the ordinary taxpayer!
After you pull yourself off the floor from laughing at this incredible news, take a few moments to read this. They really are arguing this unbelievable story on the No on Proposition 40 website.
You know that’s not true. I know that’s not true. The real reason the billionaires oppose a wealth tax is they don’t want to pay 5 percent of their vast wealth in taxes. Period.
Here’s their pitch.
Below is a screenshot from the No on Prop. 40 web site.
Caught in the public anger over income inequality and the ability of billionaires to avoid taxes, they have adopted a Trumpian version of the truth.
Fact check
Is there really a hidden provision that could allow politicians to expand this law to tax all Californians? Nope.
The Trumpian version can argue this is true, but that’s not what the proposed law says.
The initiative text says:
50310. Legislative Authority.
The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with and furthers the purposes of the 2026 Billionaire Tax Act [emphasis added].
Let’s look at that last phrase because it states precisely why the campaign claims are Trumpian.
Any future amendments to the statute must be consistent with and furthers the purposes of the 2026 Billionaire Tax Act.
The legislators can’t just willy-nilly decide to change the law. Any amendments must follow the purpose of the law.
What’s the purpose of the law? That’s easy. It’s written right in the law.
It is a one-time tax on the wealth of billionaires to pull California out of a sudden, acute health care crisis created by the federal government.
Want the fine print? Here you go:
Sec. 3. Purpose and Intent.
(a) The purpose of the 2026 Billionaire Tax Act, referred to herein as the “Act,” is to protect access to high quality, equitable health care, and to support funding for kindergarten through grade fourteen public education and food assistance programs, by raising revenue from a one-time tax on billionaire wealth.
(c) By designating billionaire wealth the source of this critical revenue, the Act confronts the fundamental unfairness that arises because a large percentage of billionaire wealth is never taxed [emphasis added] by the State due to billionaires’ unique ability to control the timing, location, and amount of income tax that they pay.
(d) The Act raises funding for health care, education, and food assistance by imposing a narrowly applicable, one-time tax that is administratively feasible and efficient to enforce against all billionaires in the State.
(e) The Act is intended to treat similarly situated taxpayers and assets similarly, except to the extent that sound tax policy requires otherwise.
There is no provision that allows nefarious legislators to expand the Billionaire tax to everyone and tax your pensions and retirement accounts. Baloney.
Trumpian version of the truth
Using the applicable legal definition and the smell test, this is the tried and true Trumpian version of the truth.
Regardless of whether you support or oppose Proposition 40, you should be outraged that this type of political hype continues.
