This upcoming November, the people of California will vote on an immensely important proposition. They will be voting on Proposition 40, which would impose a one-time tax on certain billionaires and use the money to fund healthcare, food assistance, and education-related programs. Under the proposition, 90% of the revenue would go toward healthcare, while the remaining 10% would go toward food assistance or education-related programs.
One of the main reasons why Prop 40 is being pushed by its supporters is because it could potentially provide a major source of funding for healthcare. Supporters of Prop 40 claim that it could raise approximately $100 billion dollars over the next five years. The money would come from a one-time tax on certain individuals and trusts with more than $1 billion in covered assets. This would include wealth held in businesses, stocks, art, collectibles, and property.
One of the biggest debates surrounding Prop 40 is whether taxing billionaires would provide California with additional funding without creating other financial burdens. Supporters argue that wealthy Californians have the ability to contribute more toward public services and that the money could help people who rely on healthcare programs. Junior Gavin Choy expressed his support for Prop 40, stating that”the rich have money to be able to afford the higher taxes that would be placed on them. So, I support Prop 40.” Choy’s perspective reflects the argument made by supporters that wealthy individuals have enough financial resources to handle the tax while allowing California to put more money toward healthcare and other public programs.
However, there is also an opposing point of view. People who oppose Prop 40 argue that the tax could encourage some wealthy residents to leave the state, which could reduce the amount of income tax revenue California receives in the long run. They believe that if billionaires move their businesses or investments elsewhere, California could lose money that helps fund public services. Opponents also worry that taxing personal wealth could discourage wealthy individuals from investing in California’s economy. Because of this, they worry that in the long term, California’s general populace will feel the economic and social peril.
For younger Californians, Prop 40 raises questions that could affect the future of their livelihoods after the one-time tax is collected. Healthcare, education, taxation, and California’s economy are all issues that will continue to affect the younger generations. The debate over prop 40 goes beyond just taxing billionaires, but it also goes into the depths of California’s youth. For example, many young people in California aren’t able to afford healthcare, housing, even groceries and gas are becoming too much of a burden.
Overall, Proposition 40 has created a debate about whether or not taxing billionaires is worth the benefits or possible economic peril associated with it. Ultimately, California voters will decide whether the proposition is the right way to fund healthcare, education, and other services on November 3rd.
Malcolm McKane is a junior at Washington High School, and this is his first year working at The Hatchet. Malcolm was born in Hayward but has been raised in Fremont for his entire life. He is currently the political columnist and his beat is in the WHS Academics. Outside of school, he enjoys running, Taekwondo, drumming, and playing basketball. He plans to attend university in Scotland and achieve a major in history.