Proposition 42 is leading with about 52% of the vote as of Tuesday afternoon.
Prop. 42 prohibits new taxes based on merely owning assets and retroactive taxes. It was originally created as a counter measure to Prop. 40, known as the billionaire tax, which did not pass.
“I think the campaign was definitely a little bit misleading," said Kayla Kitson, a senior policy fellow at the California Budget and Policy Center. "It was really marketed as a way to protect retirement savings when it really has much broader effects.”
For example, retroactive taxes were fairly common and helped bring in more revenue during budget shortfalls. People pay some taxes on personal property today like boats, private planes or business equipment. New taxes, similar to these would be prohibited.
