California's Billionaire Tax Is a Warning Shot at Every American Saver

Prop 40 would be the first wealth tax in US history. Tomorrow, California voters can stop it before the idea spreads east.

By Clara Hughes

Tomorrow, while the country watches the House and Senate, the most consequential economic vote in America may be happening on a single line of a California ballot. Proposition 40 would impose a one-time 5% tax on the total wealth of California's billionaires. The Tax Foundation, which tracks every state tax measure on the ballot this fall, calls it what it is: if approved, it "would represent the first US wealth tax." Not a tax on income. Not a tax on a sale. A tax on simply owning things. Supporters say it targets only about 200 people, with most of the money meant to offset cuts to Medi-Cal and other health care programs, according to KQED. Senator Bernie Sanders and Representative Ro Khanna have rallied for it in Los Angeles. That is precisely why every American, billionaire or not, should be paying attention. Keep reading with Altas Premium. Below: why Prop 40 reaches backward in time, what the final polls show,