There was a big rally for the so-called Billionaire’s Tax at UC Berkeley, which is backed by a Bay Area congressman. At the same time, the opposition to the measure is mounting and could make history.
Prop 40 would impose a one-time 5% tax on more than 200 billionaires in California. Proponents say that money would go primarily towards healthcare, with some reserved for food assistance and education.
At a UC Berkeley rally in support of the proposition, Representative Ro Khanna, one of the measure’s most vocal supporters, took the stage.
“It works because it raises the billions of dollars that will be needed so 3.5 million Californians don’t lose health care,” he said.
He says it’s because the Trump administration cut tens of billions from Medi-Cal, which provides health insurance to low-income people, and now threatens hospitals and clinics.
But the opposition against Prop 40 is massive, and so is the spending against it.
Groups opposed have spent a combined $88.7 million on ads through the election, according to the ad-tracking firm AdImpact.
“You see ads not only opposing Prop 40 but also for Prop 41 and Prop 42, those two measures on the ballot to nullify proposition 40,” KQED political correspondent Guy Marzorati said. “I think the big question at this point, given all the money that’s going against Prop 40, where does it end up in history?”
For now, Governor Newsom opposes the proposed tax and backs Prop 42.
“Gavin Newsom thinks that’s a bad idea. Because he needs those billionaire donors to run his presidential campaign,” Prop 40 supporter Saikat Chakrabarti said.
NBC Bay Area reached out to the governor’s office but did not hear back.
The chairman of the Silicon Valley GOP Dave Johnson argues the state could lose out on the taxes they would’ve gotten from billionaires if this passes.
“If you kill the engine which in other words those billionaires are typically entrepreneurs of they have established companies if you tax them even a one-time tax they could just move to another state and take their employees with them,” he said.
Johnson adds the cuts to Medi-Cal is returning things back to the way it was.
“When the federal government says we’re going to cut off your revenue stream the state cries wolf and says it’s all his fault it’s all fault never admitting that they are the reason that the federal government had to do that,” he said.
