Prop. 40 would tax “wealth” instead of “income.” That means assets like artwork, jewelry, and luxury yachts would be taxed at 5%.
It would apply to a little more than 200 people in the state.
The wealth tax was put on the ballot by one of the state’s largest unions for health care workers. It’s expected to bring in tens of billions of dollars, the vast majority of which would go to the state’s healthcare costs.
Even if Prop. 40 passes, its fate depends on two different counter measures on the ballot, Props 41 and 42.
Prop. 40 would be cancelled out if either of those measures passes with more votes.