Policy

Prop 40 architects disagree over key details

· 2 min read

Watch:

A one-time tax?

Professor Saez, Stanford Institute for Economic Policy Research Economic Summit. March 2026; Dave Regan, President of SEIU-UHW on KCRA TV. June 2026; Professor Saez, Young America’s Foundation Debate. May 2026

The co-authors of Prop 40 can’t even agree on the details of the proposed tax. Is it a one-time tax or is it not? Will it result in capital flight from California–or not?

  • Professor Zucman asserts the tax will not be one-time:

    “Look, I don’t hide my belief that I think eventually California, other states, and the US as a whole will need some form of annual wealth tax…. I’m not hiding that … because we have structural problems…. And we are not going to fix that with just a one-time tax.” —Professor Zucman on KQED Forum (Sep 2026)

     

  • Dave Regan repeatedly has insisted it is a “one-time” tax:

    “This is a one time emergency tax to address the collapse of our health care system in California and the loss of health care coverage for 3.5 million people.” —Dave Regan on KCRA (June 2026)

Listen:

“...it will raise $100 billion to address”

Professor Zucman, KQED Forum. Sep 2026

Even the architects of the measure don’t agree if it will be extended or what the true impacts will be on the state’s economy or revenues. That might be why Prop 40 includes a loophole that lets the State Legislature expand the tax without a vote of the people. This means they could pass taxes on savings, home equity and retirement funds—all without approval from voters.

  • “A one-time tax would not solve the state’s structural fiscal problems even if it managed to raise significant revenues.” —Andersen Institute, Columbia, and UC Berkeley academic research paper 

  • Prop 40 contains a loophole that gives the Legislature the ability to amend its provisions without a vote of the people. This means lawmakers could expand the tax beyond billionaires to additional assets and taxpayers.

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