The 'poison pill' ballot measure that could kill the California billionaire tax
The strongest challenge to California's billionaire tax could be a competing ballot measure that bans state taxes on retirement accounts, say tax experts.
TL;DR
- California voters will decide on Proposition 40, the 'Billionaire Tax Act,' a 5% tax on net worth over $1 billion.
- The billionaire tax is one of the most watched measures, potentially being the first state tax on net worth.
- A competing ballot measure, Proposition 42, aims to ban state taxes on retirement accounts and personal property.
- Tax experts suggest Proposition 42 could serve as a 'poison pill,' defeating Proposition 40 if it receives more votes.
- Opponents of the billionaire tax have funded a significant ad campaign, while supporters of Prop 42 argue it's a billionaire-funded trick to protect their assets.